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PUBLIC PAPERS OF THE PRESIDENTS 
OF THE UNITED STATES 









PUBLIC PAPERS OF THE PRESIDENTS 
OF THE UNITED STATES 

Dwight D. Eisenhower 



fT .. M u^„. ^ 




! 954 

Containing the Public Messages, Speeches, and 
Statements of the President 

JANUARY I TO DECEMBER 31, 1 954 

BATES COLLEGE 

LIBRARY 

LEWISTON. MAINE 



PUBLISHED BY THE 

OFFICE OF THE FEDERAL REGISTER 

NATIONAL ARCHIVES AND RECORDS SERVICE 

GENERAL SERVICES ADMINISTRATION 



lV* » s * 'A* 







U.S. GOVERNMENT PRINTING OFFICE: I960 



For sale by the Superintendent of Documents, U.S. Government Printing Office 
Washington 25, D.C. - Price $7.25 



FOREWORD 



THERE HAS BEEN a long-felt need for an orderly series of the 
Public Papers of the Presidents. A reference work of this type 
can be most helpful to scholars and officials of government, to 
reporters of current affairs and the events of history. 

The general availability of the official text of Presidential docu- 
ments and messages will serve a broader purpose. As part of the 
expression of democracy, this series can be a vital factor in the 
maintenance of our individual freedoms and our institutions of 
self-government. 

I wish success to the editors of this project, and I am sure their 
work through the years will add strength to the ever-growing 
traditions of the Republic. 



PREFACE 



IN THIS VOLUME are gathered most of the public messages 
and statements of the President of the United States that were 
released by the White House during the year 1954. A similar 
volume, covering the year 1957, was published early in 1958 as 
the first of a series. The President's foreword is reprinted from 
that volume. 

Immediate plans for this series call for the publication of 
annual volumes soon after the close of each new calendar year, 
and at the same time undertaking the periodic compilation of 
volumes covering previous years. Volumes covering the years 
1954 through 1959 are now available. 

This series was begun in response to a recommendation of the 
National Historical Publications Commission (44 U.S.C. 393). 
The Commission's recommendation was incorporated in regula- 
tions of the Administrative Committee of the Federal Register 
issued under section 6 of the Federal Register Act (44 U.S.C. 
306). The Committee's regulations, establishing the series, are 
reprinted at page 1 1 39 as "Appendix D." 

The first extensive compilation of the messages and papers of 
the Presidents was assembled by James D. Richardson and pub- 
lished under Congressional authority between 1896 and 1899. It 
included Presidential materials from 1789 to 1897. Since then, 
there have been various private compilations, but no uniform, 
systematic publication comparable to the Congressional Record 
or the United States Supreme Court Reports, 

For many years Presidential Proclamations have been published 
in the United States Statutes at Large. The Federal Register Act 
in 1935 required that Proclamations, Executive Orders, and some 
other official Executive documents be published in the daily 
Federal Register; but the greater part of Presidential writings 
and utterances still lacked an official medium for either current 

vn 



Preface 

publication or periodic compilation. Some of them were inter- 
spersed through the issues of the Congressional Record while 
others were reported only in the press or were generally available 
only in mimeographed White House releases. Under these cir- 
cumstances it was difficult to remember, after a lapse of time, 
where and in what form even a major pronouncement had been 
made. 

CONTENT AND ARRANGEMENT 

The text of this book is based on Presidential materials issued 
during the calendar year 1954 as White House releases and on 
transcripts of news conferences. Where available, original source 
materials have been used to protect against substantive errors 
in transcription. A list of the White House releases from which 
final selections were made is published at page 1 1 19 as "Appendix 
A." 

The full text of the President's news conferences is here pub- 
lished for the first time. In 1954 direct quotation of the Presi- 
dent's replies to queries usually was not authorized by the White 
House. 

Proclamations, Executive Orders, and similar documents, re- 
quired by law to be published in the Federal Register and Code of 
Federal Regulations are not repeated. Instead, they are listed 
by number and subject under the heading "Appendix B" at 
page 1 132. 

The President is required by statute to transmit numerous 
reports to Congress. Those transmitted during 1954 are listed at 
page 1 138 as "Appendix C." 

The items published in this volume are presented in chronolog- 
ical order, rather than being grouped in classes. Most needs for 
a classified arrangement are met by the subject index. For exam- 
ple, a reader interested in veto messages sent to Congress during 
1954 will find them listed in the index under "veto messages." 

The dates shown at the end of item headings are White House 
release dates. In instances where the date of the document differs 

VIII 



Preface 

from the release date that fact is shown in brackets immediately 
following the heading. Other editorial devices, such as text notes, 
footnotes, and cross references, have been held to a minimum. 

Remarks or addresses were delivered in Washington, D.C., 
unless otherwise indicated. Similarly, statements, messages, and 
letters were issued from the White House in Washington unless 
otherwise indicated. 

The planning and editorial work for this volume were under 
the direction of David C. Eberhart of the Office of the Federal 
Register, assisted by Warren R. Reid and Mildred B. Berry. 
The index was prepared by Dorothy M. Jacobson. Frank H. 
Mortimer of the Government Printing Office developed the 
typography and design. 

Wayne C. Grover 
Archivist of the United States 

Franklin Floete 

Administrator of General Services 

June 22, i960 



51986—60 2 IX 



CONTENTS 

Page 

FOREWORD V 

PREFACE Vn 

LIST OF ITEMS XIH 

PUBLIC PAPERS OF DWIGHT D. EISENHOWER ... I 

Appendix A — White House Press Releases, 1954 . . 11 19 

Appendix B — Presidential Documents Published in the 

Federal Register, 1954 1132 

Appendix C — Presidential Reports to the Congress, 1954 . 1 138 

Appendix D — Rules Governing This Publication . . 1 1 39 

index 1 141 



XI 



LIST OF ITEMS 

Page 

i Memorandum on the Red Cross Campaign. January 4, 

1954 l 

2 Radio and Television Address to the American People on 
the Administration's Purposes and Accomplishments. 
January 4, 1954 2 

3 Annual Message to the Congress on the State of the Union. 
January 7, 1954 6 

4 Special Message to the Congress on Agriculture. January 

ii, 1954 23 

5 Special Message to the Congress on Labor-Management 
Relations. January 11, 1954 40 

6 Special Message to the Senate Transmitting the Mutual 
Defense Treaty Between the United States and the Repub- 
lic of Korea. January 11, 1954 45 

7 Letter to Julius Ochs Adler, Chairman, National Security 
Training Commission, Concerning the Reserve Establish- 
ment. January 12, 1954 46 

8 Citations Accompanying Medals of Honor Presented to 
William R. Charette, Edward R. Schowalter, Jr., and 
Ernest E. West. January 12, 1954 47 

9 The President's News Conference of January 13, 1954 50 

10 Special Message to the Congress on Old Age and Survivors 
Insurance and on Federal Grants-in-Aid for Public Assist- 
ance Programs. January 14, 1954 62 

xin 



List of Items 

Page 

1 1 Special Message to the Congress on the Health Needs of the 
American People. January 18, 1954 69 

12 Letter to President Hoover Regarding the Commission on 
Organization of the Executive Branch. January 18, 1954 77 

13 Statement by the President on the Approval by the Nether- 
lands Parliament of the European Defense Community 
Treaty. January 20, 1954 79 

14 Annual Budget Message to the Congress: Fiscal Year 1955. 
January 2 1, 1954 79 

15 Memorandum Concerning Purchase of Savings Bonds by 
Government Employees. January 22, 1954 192 

16 Memorandum Transmitting Report of the Commission on 
Foreign Economic Policy. January 23, 1954 192 

17 Special Message to the Congress on Housing. January 25, 

J 954 193 

18 The President's News Conference of January 27, 1954 201 

19 Remarks of Welcome to President Bayar of Turkey. Janu- 
ary 27, 1954 212 

20 Toasts of the President and President Bayar at the White 
House. January 27, 1954 212 

2 1 Annual Message Transmitting the Economic Report to the 
Congress. January 28, 1954 215 

22 Address Recorded for the Republican Lincoln Day Dinners. 
January 28, 1954 218 

23 Toasts of the President and President Bayar at the Turkish 
Embassy. January 29, 1954 222 

xiv 



List of Items 



Page 



24 Statement by the President Upon Signing Bill Amending 
the Agricultural Adjustment Act of 1938. January 30, 

1954 224 

25 The President's News Conference of February 3, 1954 225 

26 Letter to Walter Reuther, President, United Automobile 
Workers, CIO, Concerning Economic Growth and Sta- 
bility. February 3, 1954 234 

27 Veto of Bill Authorizing Commemorative Coinage for the 
Tercentennial Celebration of the City of Northampton, 
Massachusetts. February 3, 1954 236 

28 Veto of Bill Authorizing Commemorative Coinage for the 
Tercentennial Celebration of the City of New York. Feb- 
ruary 3, 1954 237 

29 Veto of Bill Authorizing Commemorative Coinage for the 
Sesquicentennial of the Louisiana Purchase. February 3, 

1954 238 

30 Letter to Frederic L. Vorbeck, Executive Chairman, United 
Catholic Organizations for the Freeing of Cardinal 
Mindszenty. February 4, 1954 239 

31 Remarks at the Lincoln Day Box Supper. February 5, 

J 954 240 

32 Remarks Broadcast as Part of the American Legion "Back 

to God" Program. February 7, 1954 243 

33 The President's News Conference of February 10, 1954 245 

34 Statement by the President on the Participation by Eugene, 
Oregon, in the Multiple Purpose Development of the Mc- 
Kenzie River. February 10, 1954 256 



xv 



List of Items 



Page 



35 Letter to Governor Thornton, Chairman of the Governors' 
Conference 1954, Proposing a Visit to Korea by a Select 
Group of Governors. February n, 1954 256 

36 Statement by the President on the Appointment of Admiral 
Jerauld Wright as Supreme Allied Commander, Atlantic. 
February 17, 1954 257 

37 Remarks to the White House Conference on Highway 
Safety. February 17, 1954 258 

38 Special Message to the Congress Recommending Amend- 
ments to the Atomic Energy Act. February 17, 1954 260 

39 The President's News Conference of February 17, 1954 269 

40 Message to Prime Minister Nehru Commending the Indian 
Custodial Forces in Korea. February 19, 1954 278 

41 Veto of Bill Relating to Claims of Certain Employees of 

the Bureau of Prisons. February 22, 1954 279 

42 Veto of Bill for the Relief of Mrs. Anna Holder. Febru- 
ary 23, 1954 281 

43 Statement by the President on Proposed Improvements in 

the Federal Personnel Program. February 24, 1954 282 

44 Letter to Prime Minister Nehru of India Concerning U.S. 
Military Aid to Pakistan. February 25, 1954 284 

45 Statement by the President on Military Aid to Pakistan. 
February 25, 1954 285 

46 Statement by the President Marking the Opening of the 

Red Cross Drive. February 28, 1954 286 

47 Message Recorded for the Observance of World Day of 
Prayer. March 2, 1954 288 



XVI 



List of Items 

Page 

48 The President's News Conference of March 3, 1954 288 

49 Statement by the President on the Administration's Pro- 
gram for the Domestic Wool Industry. March 4, 1954 298 

50 The President's News Conference of March 10, 1954 299 

5 1 Remarks at Conference of the National Association for the 
Advancement of Colored People. March 10, 1954 310 

52 Statement by the President on the Approval by the Belgian 
Parliament of the European Defense Community Treaty. 
March 12, 1954 311 

53 Remarks on Dedicating by Remote Control the First Power 
Unit at Fort Randall Dam, South Dakota. March 15, 

J 954 3 J 2 

54 Radio and Television Address to the American People on 

the Tax Program. March 15, 1954 313 

55 Letter to the Governors of the States and Territories Re- 
questing Them To Serve as Honorary Chairmen, United 
Defense Fund. March 16, 1954 318 

56 Statement by the President Upon Signing Bill Providing 
for Protection of Mexican Migrant Labor. March 16, 

*954 319 

57 The President's News Conference of March 17, 1954 320 

58 Veto of BiU for the Relief of Wilhelm Engelbert. March 

*7> 1954 333 

59 Veto of Bill for the Relief of the Estate of Mrs. Margareth 
Weigand. March 17, 1954 334 

60 Statement by the President Upon Signing Executive Order 
Strengthening the Scientific Programs of the Federal Gov- 
ernment. March 17, 1954 335 

XVII 



List of Items 

Page 

6 1 Citation Accompanying Medal of Honor Presented to Ola 

L. Mize. March 18, 1954 336 

62 Statement by the President Upon Approving Recommenda- 
tions for the Development of the Upper Colorado River 
Basin. March 20, 1954 338 

63 The President's News Conference of March 24, 1954 339 

64 Statement by the President Upon Signing Bill To Amend 

the Natural Gas Act. March 27, 1954 349 

65 Letter Accepting Resignation of Joseph M. Dodge as Direc- 
tor of the Bureau of the Budget. March 27, 1954 350 

66 Statement by the President on the Ratification by Germany 
of Treaties Relating to the Proposed European Defense 
Community. March 29, 1954 351 

67 Special Message to the Congress on Foreign Economic 
Policy. March 30, 1954 352 

68 The President's News Conference of March 31, 1954 364 

69 Letter to Lindsay Warren Regarding His Retirement as 
Comptroller General of the United States. March 31, 

J 954 37i 

70 Statement by the President on the Death of General Hoyt 

S. Vandenberg. April 2, 1954 371 

7 1 Statement by the President on the Fifth Anniversary of the 
Signing of the North Atlantic Treaty. April 4, 1954 372 

72 Radio and Television Address to the American People on 

the State of the Nation. April 5, 1954 372 

73 The President's News Conference of April 7, 1954 381 

xvin 



List of Items 



Page 



74 Statement by the President on the Approval by the Luxem- 
bourg Parliament of the European Defense Community 
Treaty. April 7, 1954 390 

75 Statement by the President Upon Approving the Joint 
Resolution Providing for the Observance of Bataan Day. 
April 8, 1954 391 

76 Remarks at Ceremony Marking the Issuance of the First 
Stamp Bearing the Motto "In God We Trust." April 8, 

1954 39 1 

77 Remarks at Luncheon Meeting of the National Conference 

of Republican Women. April 8, 1954 392 

78 Remarks at the "Help Korea" Trains Ceremony. April 9, 

J954 395 

79 Citation Accompanying Medal of Honor Presented to Ben- 
jamin F. Wilson. April 10, 1954 396 

80 Statement by the President on the Death of Senator Gris- 

wold of Nebraska. April 12, 1954 397 

81 Memorandum to the Administrator, Housing and Home 
Finance Agency, Directing Him To Take Custody of the 
Records of the Federal Housing Administration. April 12, 

*954 398 

82 Message to the King of Laos on the 50th Anniversary of His 
Accession to the Throne. April 15, 1954 398 

83 Exchange of Messages Between the President and the Presi- 
dent of France and the Chief of State of Viet-Nam Concern- 
ing the Defenders of Dien Bien Phu. April 16, 1954 399 

84 Statement by the President Regarding Relationships With 
the Proposed European Defense Community. April 16, 

1954 400 

XIX 



List of Items 



Page 



85 Telegram Inviting the Governors of States Afflicted by Dust 
Storms To Attend Conference at the White House. April 

1 6, 1954 402 

86 Remarks to the 63d Continental Congress of the National 
Society of the Daughters of the American Revolution. 
April 22, 1954 403 

87 Address at the Dinner of the American Newspaper Publish- 
ers Association, New York City. April 22, 1954 406 

88 Remarks at the Birthplace of Abraham Lincoln, Hodgen- 

ville, Kentucky. April 23, 1954 415 

89 Address at Transylvania College, Lexington, Kentucky. 
April 23, 1954 417 

90 Remarks at the 42 d Annual Meeting of the United States 
Chamber of Commerce. April 26, 1954 421 

91 Recorded interview by Mrs. John G. Lee, National Presi- 
dent, League of Women Voters. April 26, 1954 425 

92 The President's News Conference of April 29, 1954 427 

93 Remarks to the Leaders of the United Defense Fund. April 

29, J 954 439 

94 Special Message to the Congress Transmitting Reorganiza- 
tion Plan 1 of 1954: Foreign Claims Settlement Commission 

of the United States. April 29, 1954 440 

95 Special Message to the Congress Transmitting Reorganiza- 
tion Plan 2 of 1954 Relating to the Reconstruction Finance 
Corporation. April 29, 1954 444 

96 Remarks to the President's Committee on Employment of 

the Physically Handicapped. April 29, 1954 445 

xx 



List of Items 

Page 

97 Remarks to the Defense Advisory Committee on Women in 

the Services. April 30, 1954 446 

98 Memorandum Directing the Departments and Agencies to 
Take Part in a Civil Defense Test Exercise. April 30, 1954 447 

99 Statement by the President on the Dust Bowl Emergency. 

May 4, 1954 448 

100 Remarks to the President's Conference on Occupational 
Safety. May 4, 1954 448 

10 1 The President's News Conference of May 5, 1954 450 

102 Statement by the President Upon Signing the Federal- Aid 
Highway Act of 1954. May 6, 1954 459 

103 Remarks at the 22d Annual Convention of the Military 
Chaplains Association. May 6, 1954 460 

104 Exchange of Messages Between the President and the Presi- 
dent of France on the Fall of Dien Bien Phu. May 7, 

1954 463 

105 Exchange of Messages Between the President and the Chief 
of State of Viet-Nam on the Fall of Dien Bien Phu. 

May 7, 1954 4 6 4 

106 Remarks at the Capitol at the Dedication of the Rotunda 
Frieze. May 11, 1954 465 

107 The President's News Conference of May 12, 1954 466 

108 Remarks at the Annual Conference of the Society for Per- 
sonnel Administration. May 12, 1954 475 

109 Statement by the President on the Death of Senator Hoey 

of North Carolina. May 12, 1954 478 

xxi 



List of Items 

Page 
no Remarks Upon Signing the St. Lawrence Seaway Bill. 

May 13, 1954 479 

1 1 1 Remarks at the Armed Forces Day Dinner. May 14, 1954 479 

112 Letter to General Wladyslaw Anders of the Polish Armed 
Forces in Exile on Commemoration of the Battle of Monte 
Cassino. May 17, 1954 482 

1 1 3 Letter to the Secretary of Defense Directing Him To With- 
hold Certain Information from the Senate Committee on 
Government Operations. May 17, 1954 483 

114 Address on Freedom Celebration Day, Charlotte, North 
Carolina. May 18, 1954 485 

115 The President's News Conference of May 19, 1954 489 

116 Special Message to the Congress on Contributory Group 

Life Insurance for Federal Employees. May 19, 1954 498 

1 1 7 Exchange of Messages Between the President and the King 
of Laos on the Occasion of Constitution Day. May 20, 

J 954 499 

118 Remarks to the Committee for Economic Development. 

May 20, 1954 500 

119 Letter to Charles H. Percy of Chicago Concerning the 
President's Foreign Economic Policy Proposals. May 20, 

x 954 503 

120 Remarks at the Annual Convention of the National Rivers 

and Harbors Congress. May 25, 1954 505 

121 Veto of Bill Providing for the Conveyance of Lands Within 
Camp Blanding Military Reservation, Florida. May 25, 

! 954 5°7 

xxn 



List of Items 

Page 

122 Letter to Secretary McKay Establishing a Cabinet Commit- 
tee on Water Resources Policy. May 26, 1954 509 

123 Statement by the President on Receiving the Air Coordi- 
nating Committee Report on U.S. Aviation Policy. May 

26, 1954 511 

124 Toasts of the President and Emperor Haile Selassie of 
Ethiopia. May 26, 1954 512 

125 Special Message to the Congress Transmitting Recommen- 
dations Adopted by the International Labor Organization. 

May 28, 1954 513 

126 Special Message to the Congress Transmitting Convention 
Adopted by the International Labor Organization. May 

28, 1954 514 

127 Remarks to the 44th National Council of the Boy Scouts 

of America. May 29, 1954 515 

128 Address at the Columbia University National Bicentennial 
Dinner, New York City. May 31, 1954 517 

129 The President's News Conference of June 2, 1954 526 

130 Statement by the President on the Record of the Depart- 
ment of Justice in Dealing With Subversive Activities. 

June 2, 1954 533 

131 Excerpts From Remarks to a Group of Correspondents 
About To Return to the Scene of the Normandy Invasion. 

June 2, 1954 535 

132 Memorandum on the Community Chest Campaign in the 
National Capital Area. June 5, 1954 536 

133 Statement by the President on the 10th Anniversary of the 
Landing in Normandy. June 6, 1954 537 

XXIII 



List of Items 

Page 

134 Veto of Bill for the Relief of Theodore W. Carlson. June 

7> J 954 538 

135 Veto of Bill for the Relief of Mrs. Ann Elizabeth Caulk. 

June 7, 1954 540 

136 Remarks at the Washington College Commencement, 
Chestertown, Maryland. June 7, 1954 541 

137 Veto of Bill To Amend the Public Health Service Act. 

June 8, 1954 544 

138 The President's News Conference of June 10, 1954 545 

139 Address at Meeting of District Chairmen, National Citizens 

for Eisenhower Congressional Committee. June io, 1954 555 

140 Statement by the President Upon Signing Bill To Include 
the Words "Under God" in the Pledge to the Flag. June 

H, J 954 5 6 3 

141 Veto of Bill for the Relief of Mrs. Rose Kaczmarczyk. 

June 14, 1954 563 

142 Veto of Bill for the Relief of Mrs. Josette L. St. Marie. 

June 14, 1954 565 

143 The President's News Conference of June 16, 1954 566 

144 Remarks at the Convention of the National Association 

of Retail Grocers. June 16, 1954 575 

145 Statement by the President Upon Signing Bill Amending 

the Railroad Retirement Act of 1937. June 16, 1954 578 

146 Remarks to the National 4-H Club Campers. June 17, 

1954 5 8 ° 

XXIV 



List of Items 



Page 



147 Statement by the President Upon Signing Bill Concerning 
Termination of Federal Supervision Over the Menominee 
Indian Tribe. June 17, 1954 582 

148 Exchange of Letters Between the President and President 
Coty of France After the Fall of the Laniel Cabinet. 

June 18, 1954 583 

149 Remarks at the National Editorial Association Dinner. 

June 22, 1954 585 

150 Special Message to the Congress on the Mutual Security 
Program. June 23, 1954 590 

151 Remarks at a Breakfast Meeting of the National Cartoon- 
ists Society. June 24, 1954 594 

152 Statement by the President Upon Signing Bill Relating to 
the Administrative Jurisdiction Over Certain Public Lands 

in Oregon. June 24, 1954 597 

153 Letter to Dr. Chester I. Barnard, Chairman, National Sci- 
ence Board, Concerning United States Participation in the 
International Geophysical Year. June 25, 1954 597 

154 Joint Statement by the President and Prime Minister 
Churchill. June 28, 1954 599 

155 Joint Declaration by the President and the Prime Minister 

of the United Kingdom. June 29, 1954 600 

156 Veto of Bill Conveying Certain Public Lands to Jake Alex- 
ander. June 29, 1954 601 

157 The President's News Conference of June 30, 1954 602 

158 Exchange of Messages Between the President and the Presi- 
dent of Mexico on the Rio Grande Flood Disaster. July 

1, 1954 614 

xxv 



List of Items 

Page 

159 Veto of Bill for the Relief of Ralston Edward Harry. July 

3> r 954 615 

1 60 Message to the Mayor of Philadelphia for the Fourth of July 
Ceremonies at Independence Hall. July 5, 1954 616 

161 The President's News Conference of July 7, 1954 617 

162 Statement by the President Upon Signing the Agricultural 
Trade Development and Assistance Act of 1954. July 10, 

1954 626 

1 63 Letter to Secretary Weeks Establishing a Cabinet Committee 

on Transport Policy and Organization. July 12, 1954 627 

164 Message for the Governors' Conference at Lake George and 
Request for Recommendations as to a Federal-State High- 
way Program. July 12, 1954 628 

165 The President's News Conference of July 14, 1954 629 

166 Statement by the President Upon Signing Bill Increasing 
Reenlistment Bonuses for Members of the Uniformed Serv- 
ices. July 16, 1954 640 

167 Remarks at Presentation by Field Marshal Alexander of a 
Portrait of the President. July 20, 1954 641 

168 The President's News Conference of July 21, 1954 641 

169 Statement by the President Reviewing the Progress Made 
Toward a Balanced Budget. July 22, 1954 651 

170 Remarks at the World Christian Endeavor Convention. 

July 25, 1954 652 

1 7 1 Toasts of the President and President Rhee of Korea at the 
White House. July 26, 1954 655 

XXVI 



List of Items 

Page 

172 The President's News Conference of July 28, 1954 658 

173 Statement by the President Upon Signing Bill To Provide 
Water From the Santa Margarita River. July 28, 1954 668 

1 74 Toasts of the President and President Rhee of Korea at the 
Dinner for President Eisenhower. July 28, 1954 670 

175 Statement by the President on Extending Aid to Flood 
Stricken Areas in Eastern and Central Europe. July 29, 

1954 672 

176 Citation Accompanying the Medal of Freedom Presented to 
Genevieve de Galard-Terraube. July 29, 1954 672 

177 Letter to Joseph T. Meek, Illinois Republican Candidate for 

the Senate. July 30, 1954 673 

178 Joint Statement by the President and President Rhee of 
Korea. July 30, 1954 674 

179 Statement by the President Upon Signing the Housing Act of 
1954. August 2, 1954 675 

180 Statement by the President Upon Signing the Vocational 
Rehabilitation Amendments of 1954. August 3, 1954 676 

181 Veto of Bill for the Relief of Klyce Motors, Incorporated. 
August 3, 1954 677 

182 The President's News Conference of August 4, 1954 678 

183 Memorandum on the Community Chest and United Fund 
Campaigns. August 4, 1954 687 

184 Exchange of Letters Between the President and the Shah of 
Iran Concerning the Settlement of the Oil Problem. Au- 
gust 5, 1954 688 

XXVII 



List of Items 



Page 



185 Letter to Herbert Hoover, Jr., on His Contribution to the 
Settlement of the Anglo-Iranian Oil Dispute. August 7, 

1954 689 

186 Letter to Ambassador Loy W. Henderson on His Contribu- 
tion to the Settlement of the Anglo-Iranian Oil Dispute. 
August 7, 1954 690 

187 Letter to the Governors of the States Urging Them To Es- 
tablish Committees To Assist in Implementing the Refugee 
Relief Act. August 7, 1954 691 

188 Letter to the Governor of New York Congratulating Him 
on Establishing a Committee To Assist in Implementing the 
Refugee Relief Act. August 7, 1954 692 

189 Exchange of Letters Between the President and Chancellor 
Adenauer Concerning Vested German Assets in the United 
States. August 10, 1954 692 

190 Letter to President Hoover on the Occasion of His 80th 
Birthday. August 10, 1954 694 

191 Statement by the President Upon Signing Bills To Modern- 
ize the Tanker Fleet. August 10, 1954 695 

192 The President's News Conference of August 11, 1954 696 

1 93 Letter Directing the Attorney General To Petition for an In- 
junction in Labor Dispute at the Atomic Energy Commis- 
sion Facilities at Oak Ridge and Paducah. August 11, 

1954 705 

194 Statement by the President on the State of the Economy at 
Midyear. August 12, 1954 7°7 

195 Memorandum Directing Use of Agricultural Commodities 
for Flood Relief in Austria, the Federal Republic of Ger- 
many, and Soviet-Occupied Germany. August 12, 1954 711 

xxvin 



List of Items 

Page 

196 Letter to Chairmen, Senate and House Agriculture Com- 
mittees, on the Farm Bills in Conference. August 12, 1954 712 

197 Remarks to Republican Candidates Supported by Citizens 

for Eisenhower Groups. August 12, 1954 714 

198 Message for the Ceremonies Marking the 10th Anniversary 

of Allied Landings in Southern France. August 14, 1954 714 

199 Statement by the President Upon Signing Bill Revising the 
Internal Revenue Code. August 16, 1954 715 

200 The President's News Conference of August 17, 1954 717 

201 Statement by the President Upon Signing Bill Amending 

the Water Facilities Act. August 17, 1954 725 

202 Statement by the President Upon Signing the Federal Em- 
ployees' Group Life Insurance Act. August 17, 1954 729 

203 Address at the Illinois State Fair at Springfield. August 

!9> J954 729 

204 Address at the Second Assembly of the World Council of 
Churches, Evanston, Illinois. August 19, 1954 734 

205 Message to Madame de Gasperi on the Death of the Prime 
Minister of Italy. August 19, 1954 740 

206 Veto of Bill Regulating the Election of Delegates From the 
District of Columbia to National Political Conventions. 
August 20, 1954 741 

207 Statement by the President Upon Signing Bill Governing 
the Keeping and Public Inspection of Arrest Books in the 
District of Columbia. August 20, 1954 742 

208 Memorandum of Disapproval of Federal Employees' Pay 

Bill. August 23, 1954 744 

XXIX 



List of Items 

Page 

209 Radio and Television Address to the American People on 

the Achievements of the 83d Congress. August 23, 1954 746 

210 Statement by the President Upon Signing the Communist 
Control Act of 1954. August 24, 1954 756 

2 1 1 Remarks on the Communist Control Act of 1954. August 

24. 1954 759 

212 Memorandum of Disapproval of a Bill for the Relief of 
Nina Makeef, Also Known as Nina Berberova. August 24, 

1954 760 

213 Statement by the President Upon Signing Bill Amending 

the Merchant Marine Act of 1936. August 26, 1954 761 

214 Letter to Secretary Mitchell Establishing an Interdepart- 
mental Committee on Migratory Labor. August 26, 1954 762 

2 1 5 Memorandum of Disapproval of Bill for the Relief of George 
Pantelas. August 26, 1954 763 

216 Memorandum of Disapproval of Bill for the Relief of the 
Estate of Mary Beaton Denninger. August 26, 1954 764 

217 Letter to Harry A. Bullis of Minneapolis on Foreign Eco- 
nomic Policy. August 26, 1954 765 

218 Memorandum of Disapproval of Bill Concerning Compen- 
sation of Quarantine Inspection Personnel. August 27, 

1954 767 

2 1 9 Statement by the President Upon Signing Bill Establishing a 

New Limit on the Federal Debt. August 28, 1954 770 

220 Statement by the President Upon Signing Bills Increasing 
Payments to Veterans or Their Dependents. August 28, 

1954 77° 

XXX 



List of Items 

Page 

221 Statement by the President Upon Signing the Agricultural 

Act of 1954. August 28, 1954 772 

222 Memorandum of Disapproval of Bill Providing for Taxation 
by Wyoming of Property Within Grand Teton National 
Park. August 28, 1954 775 

223 Statement by the President Upon Signing the Atomic Energy 

Act of 1954. August 30, 1954 776 

224 Statement by the President Upon Signing Bill Authorizing 
Construction of Bridges Over the Potomac River. August 

3°> J 954 777 

225 Address at the American Legion Convention. August 30, 

1954 779 

226 Address at the Iowa State Fair at Des Moines. August 

3°> x 954 787 

227 Statement by the President Upon Signing Bill Increasing Un- 
employment Compensation Benefits in the District of Co- 
lumbia. August 31, 1954 792 

228 Memorandum of Disapproval of Bill for the Relief of Anna 

K. McQuilkin. August 31, 1954 792 

229 Memorandum of Disapproval of Bill for the Relief of S. H. 
Prather, Mrs. Florence Prather Penman, and S. H. Prather, 

Jr. August 31, 1954 794 

230 Memorandum of Disapproval of Bill for the Relief of the 
Estate of Carlos M. Cochran. August 31, 1954 795 

231 Memorandum of Disapproval of Bill for the Relief of Law- 
rence F. Kramer. August 31, 1954 797 

232 Memorandum of Disapproval of Bill for the Relief of 
Graphic Arts Corporation. August 31, 1954 798 

XXXI 



List of Items 

Page 

233 Statement by the President on the Death of Senator May- 
bank of South Carolina. September 1, 1954 800 

234 Statement by the President Upon Signing Bill Providing 
Benefits for Government Employees. September 1, 1954 800 

235 Statement by the President Upon Signing the Social Security 
Amendments of 1954. September 1, 1954 801 

236 Statement by the President Upon Signing Bill To Extend 
and Improve the Unemployment Insurance Program. 
September 1, 1954 803 

237 Statement by the President Upon Signing Bill Authorizing 
Construction of Family Housing for Military Personnel and 
Their Dependents. September 1, 1954 804 

238 Statement by the President Upon Signing Bill Conveying 
Certain Mineral Rights to Mrs. Pearl O. Marr. Septem- 
ber i 5 1954 805 

239 Memorandum of Disapproval of Bill for the Relief of Mrs. 
Rosaline Spagnola. September 1, 1954 806 

240 Memorandum of Disapproval of Bill for the Relief of 
Raleigh Hill. September 1, 1954 808 

241 Memorandum of Disapproval of Bill for the Relief of Mrs. 
Merle Cappeller Weyel. September 1, 1954 809 

242 Memorandum of Disapproval of Bill for the Relief of E. S. 
Berney. September 1, 1954 811 

243 Memorandum of Disapproval of Bill Concerning Claims 
Arising as a Result of Construction of Elephant Butte Dam. 
September 1, 1954 813 

244 Memorandum of Disapproval of Bill Concerning a Claim 
of the Cuban- American Sugar Company. September 1, 

1954 8l 5 

xxxn 



List of Items 

Page 

245 Memorandum of Disapproval of Bill for the Relief of Carl 
Piowaty and W. J. Piowaty. September 2, 1954 817 

246 Memorandum of Disapproval of Bill To Establish the Fi- 
nality of Contracts Between the Government and Common 
Carriers. September 2, 1954 818 

247 Memorandum of Disapproval of Bill for the Relief of T. C. 
Elliott. September 2,1954 819 

248 Memorandum of Disapproval of Bill Relating to the Label- 
ing of Packages Containing Foreign-Produced Trout. 
September 2, 1954 821 

249 Statement by the President Upon Signing the River and 
Harbor Act and the Flood Control Act of 1954. Septem- 
ber 3, 1954 823 

250 Statement by the President Upon Signing Bill Making 
Available Special Nonquota Immigrant Visas to Skilled 
Alien Sheepherders. September 3, 1954 824 

251 Memorandum of Disapproval of Bill for the Relief of the 
Trust Association of H. Kempner. September 3, 1954 824 

252 Memorandum of Disapproval of Bill Providing for a Com- 
mission To Regulate Public Transportation of Passengers 

in the Washington Area. September 3, 1954 826 

253 Memorandum of Disapproval of Bill Permitting Increased 
Water Diversion From Lake Michigan. September 3, 

1954 829 

254 Memorandum of Disapproval of Bill To Revise and Codify 
the Laws Relating to Food, Drugs, and Cosmetics. Sep- 
tember 3, 1954 831 

255 Statement by the President on Highway Safety During the 
Labor Day Weekend. September 3, 1954 832 

51986—60 3 XXXIII 



List of Items 

Page 

256 Remarks at the Airport, Grand Junction, Colorado. 
September 4, 1954 833 

257 Remarks at Natrona Airport, Casper, Wyoming. Septem- 
ber 4, 1954 835 

258 Remarks at the Airport, McCook, Nebraska. September 

4, !954 837 

259 Statement by the President: Labor Day. September 4, 

!954 839 

260 Radio and Television Remarks on the Occasion of the 
Ground-Breaking Ceremony for the Shippingport Atomic 
Power Plant. September 6, 1954 840 

261 Statement of Policy, Approved and Issued by the President, 
on Foreign Trade as Related to Agriculture. September 

9> J 954 841 

262 Letter to Clarence Francis Requesting Him To Serve as 
Chairman of Interagency Committee on Agricultural Sur- 
plus Disposal. September 9, 1954 843 

263 Letter to Members of Interagency Committee on Agricul- 
tural Surplus Disposal. September 9, 1954 844 

264 Exchange of Messages Between the President and the Shah 
of Iran on the Losses Caused in the United States by Hurri- 
cane "Carol." September 10, 1954 847 

265 Message to the President of France on the Earthquake in 
Algeria. September 10, 1954 847 

266 Statement by the President on the Meeting of the National 
Security Council in Denver. September 13, 1954 848 

267 Remarks at Dedication of the Boulder, Colorado, Labora- 
tories of the National Bureau of Standards. September 14, 

1954 848 

xxxrv 



List of Items 



Page 



268 Letter to the Governors Concerning the State and White 
House Conferences on Education To Be Held in 1955. 
September 21, 1954 850 

269 Statement by the President: National Day of Prayer. Sep- 
tember 21, 1954 852 

270 Remarks at Dedication of Aerial Fire Depot, Municipal 
Airport, Missoula, Montana. September 22, 1954 852 

271 Address at the Dedication of McNary Dam, Walla Walla, 
Washington. September 23, 1954 855 

272 Remarks at the Airport, Pendleton, Oregon. September 

23, 1954 864 

273 Address at the Hollywood Bowl, Los Angeles, California. 
September 23, 1954 865 

274 Remarks at the Breakfast in Los Angeles Given by Republi- 
can Groups of Southern California. September 24, 1954 875 

275 Remarks to the American Federation of Labor Convention, 

Los Angeles, California. September 24, 1954 880 

276 Letter to Harvey S. Firestone, Jr., National Chairman, 
United Community Campaigns of America. September 

26, 1954 884 

277 Statement by the President on the Occasion of the Jewish 

New Year. September 27, 1954 884 

278 Letter to the RE A Administrator Concerning Recent Prog- 
ress in Rural Electrification. September 28, 1954 885 

279 Statement by the President: National Newspaper Week. 
September 29, 1954 886 

280 Message to the King of Cambodia. October 2, 1954 887 

xxxv 



List of Items 



Page 



281 Letter to Dr. Thomas Keith Glennan Reconvening the 
Board of Inquiry in the Labor Dispute at Atomic Energy 
Facilities at Oak Ridge and Paducah. October 4, 1954 888 

282 Statement by the President on the Nine-Power Conference 

in London. October 4, 1954 888 

283 Exchange of Messages Between the President and President 
Einaudi of Italy on the Trieste Agreement. October 5, 

1954 889 

284 Exchange of Messages Between the President and President 
Tito of Yugoslavia on the Trieste Agreement. October 5, 

1954 890 

285 Letter to Harvey V. Higley, Administrator of Veterans 
Affairs, Designating Him Chairman of the Veterans Day 
National Committee. October 8, 1954 891 

286 Address at the Republican Precinct Day Rally, Denver, 
Colorado. October 8, 1954 892 

287 Remarks to Members of the Olympic Committee, Denver, 
Colorado. October 12, 1954 899 

288 Memorandum on Occupational Safety in the Government 
Service. October 14, 1954 900 

289 Exchange of Messages Between the President and President 
Magloire on the Hurricane Damage in Haiti. October 14, 

1954 901 

290 Remarks in Indianapolis at the Columbia Republican Club. 
October 15, 1954 902 

291 Address at Butler University, Indianapolis, Before the Na- 
tional Institute of Animal Agriculture. October 15, 1954 905 

292 Remarks of Welcome to President Tubman of Liberia. 
October 18, 1954 912 

xxxvi 



List of Items 



Page 



293 Toasts of the President and the President of Liberia. 
October 18, 1954 912 

294 Remarks at the Department of State 1954 Honor Awards 
Ceremony. October 19, 1954 914 

295 Remarks at the Trinity College Convocation, Hartford, 
Connecticut. October 20, 1954 917 

296 Remarks at the Governor Lodge Birthday Celebration in 
Hartford. October 20, 1954 919 

297 Address at the American Jewish Tercentenary Dinner, New 
York City. October 20, 1954 920 

298 Remarks at the New York Republican State Committee 
Rally, New York City. October 21, 1954 928 

299 Remarks at the Manhattan State Hospital, Wards Island, 

New York City. October 21, 1954 931 

300 Remarks at the Dedication of the State University of New 
York Medical Center, New York City. October 21, 1954 933 

301 Address at the Alfred E. Smith Memorial Dinner, New 

York City. October 21, 1954 934 

302 Letter to Senator Capehart on the Investigation of the 
Federal Housing Administration. October 23, 1954 942 

303 Remarks at the Pennsylvania Monument, Gettysburg Na- 
tional Military Park. October 23, 1954 943 

304 Remarks in Gettysburg to a Group of Republican Candi- 
dates. October 23, 1954 944 

305 Remarks Recorded for Program Marking the 75th Anniver- 
sary of the Incandescent Lamp. October 24, 1954 947 

xxxvn 



List of Items 



Page 



306 Letter to the President of the Council of Ministers of Viet- 
Nam Regarding Assistance for That Country. October 

25> *954 948 

307 Remarks in Connection With Secretary Dulles' Public Re- 
port at a Cabinet Meeting. October 25, 1954 950 

308 Address at the Forrestal Memorial Award Dinner of the Na- 
tional Security Industrial Association. October 25, 1954 951 

309 Letter to Harvey V. Higley, Administrator of Veterans Af- 
fairs, on the Elimination of Segregation in Veterans Facili- 
ties. October 26, 1954 959 

310 Remarks at the Conference of the National Women's Ad- 
visory Committee on Civil Defense. October 26, 1954 960 

311 The President's News Conference of October 27, 1954 963 

312 Letter to the Vice President in Appreciation of His Contri- 
bution to the Campaign. October 28, 1954 975 

313 Letter to Representatives Broyhill, Hyde, and Small on Leg- 
islation Benefiting Federal Employees. October 28, 1954 976 

314 Joint Statement by the President and Chancellor Adenauer. 
October 28, 1954 978 

315 Statement by the President on the Floods and Landslides 

in Italy. October 28, 1954 979 

316 Address at Eisenhower Day Dinner Given by the Citizens 
for Eisenhower Congressional Committee for the District of 
Columbia. October 28, 1954 980 

317 Remarks at the Municipal Airport, Cleveland, Ohio. Oc- 
tober 29, 1954 986 

318 Remarks in Cadillac Square, Detroit, Michigan. October 

29. 1954 99° 

xxxvm 



List of Items 

Page 

319 Remarks at Standiford Airport, Louisville, Kentucky. Oc- 
tober 29, 1954 996 

320 Remarks at New Castle County Airport, Wilmington, Dela- 
ware. October 29, 1954 1001 

321 Radio and Television Remarks on Election Eve. November 

1, 1954 1006 

322 The President's News Conference of November 3, 1954 1009 

323 Memorandum on the Administration of Foreign Aid Pro- 
grams. November 6, 1954 10 19 

324 Letter to the Chairman of the United States Delegation to 
the Ninth Session on the General Agreement on Tariffs 

and Trade. November 8 3 1954 1021 

325 Address to the National Council of Catholic Women, Bos- 
ton, Massachusetts. November 8, 1954 1023 

326 Remarks to a Representative Group Receiving Citizenship 
Papers on Veterans Day. November 9, 1954 1028 

327 Remarks to the First National Conference on the Spiritual 
Foundations of American Democracy. November 9, 1954 1029 

328 The President's News Conference of November 10, 1954 1032 

329 Special Message to the Senate Transmitting the Southeast 
Asia Collective Defense Treaty and Protocol Thereto. 
November 10, 1954 1041 

330 Joint Statement Following Discussions With Prime Min- 
ister Yoshida of Japan. November 10, 1954 1042 

331 Remarks at the Dedication of the Eisenhower Museum, 
Abilene, Kansas. November 11, 1954 1044 

xxxrx 



List of Items 



Page 



332 Special Message to the Senate Transmitting Protocols to 
Treaties Relating to the Federal Republic of Germany. 
November 15, 1954 1046 

333 Remarks to the American Council To Improve Our Neigh- 
borhoods. November 15, 1954 1051 

334 Remarks on Receiving the Frank H. Lahey Award From 
the National Fund for Medical Education. November 16, 

1954 1052 

335 Remarks at Annual Meeting of the Association of Land- 
Grant Colleges and Universities. November 16, 1954 1053 

336 Statement by the President : Safe Driving Day. November 

16, 1954 1056 

337 White House Statement Following Bipartisan Conference 
on Foreign Affairs and National Security. November 17, 

1954 I0 57 

338 Remarks to Executive Committee of the United States 
Junior Chamber of Commerce and Directors of the Cana- 
dian Chamber of Commerce. November 19, 1954 1 o^8 

339 Statement by the President on the Death of Governor 
William S. Beardsley of Iowa. November 22, 1954 1059 

340 Message to the Conference of Ministers of Finance and 
Economy Meeting in Rio de Janeiro. November 22, 1954 1059 

341 The President's News Conference of November 23, 1954 1060 

342 Message to the Relatives of Americans Held Prisoner by 

the Chinese Communists. November 25, 1954 107 1 

343 Letter to Heads of Departments Constituting the Interde- 
partmental Committee on Narcotics. November 27, 1954 1072 

XL 



List of Items 

Page 

344 Message to Sir Winston Churchill on the Occasion of His 

8oth Birthday. November 29, 1954 1073 

345 The President's News Conference of December 2, 1954 1073 

346 Remarks to the Washington Conference of Mayors. De- 
cember 2, 1954 1084 

347 The President's News Conference of December 8, 1954 1086 

348 Letter to Joseph M. Dodge Designating Him as Special 
Assistant to the President and as Chairman, Council on 
Foreign Economic Policy. December 11, 1954 1097 

349 White House Statement Following Meetings With Repub- 
lican Leaders of Congress on the Legislative Program. 
December 13, 1954 1099 

350 Remarks Recorded for the Dedication of the Memorial Press 
Center, New York City. December 13, 1954 1100 

351 White House Statement Following Bipartisan Conference on 
Foreign Affairs, National Defense, and Mutual Security. 
December 14, 1954 1101 

352 Message Recorded on Film in Connection with the Observ- 
ance of Safe Driving Day. December 14, 1954 1 103 

353 The President's News Conference of December 15, 1954 1103 

354 Letter to Nelson A. Rockefeller Appointing Him Special As- 
sistant to the President. December 16, 1954 11 14 

355 Remarks at the Pageant of Peace Ceremonies. December 

i7 ? J954 i IX 5 

356 Memorandum on the Red Cross Campaign. December 2 1 , 

1954 IIX 7 

357 Statement by the President on the Vote by the French As- 
sembly To Ratify the Paris Treaties. December 30, 1954 1 1 18 

51986—60 4 XLI 



Dwight D. Eisenhower 
1954 



i •! Memorandum on the Red Cross Campaign. 
January 4, 1954 

To the Heads of Executive Departments and Agencies: 

The Red Gross has long since become an important and valued feature 
of American life. As a great fellowship, it welcomes all as members. 
Its activities are so far flung and so vital to our Nation that it seems 
advisable, occasionally, to remind ourselves of their scope and character. 
In war it renders so many services, so well, to men fighting for freedom, 
that among the armed forces no morale factor is more important than 
the Red Cross. In peace the American spirit of people helping people 
is demonstrated through Red Cross services. In disasters it mitigates 
sufferings caused by fire, famine, pestilence, tornado and flood. Through 
its civilian and military blood donor program it means life to thousands 
of men, women and children each year. Through its activities the Red 
Cross is on duty everywhere, in the United States and abroad, in the 
humblest homes, in great disasters. It serves all creeds, all races, all 
countries. 

The personnel of the Federal Government has set a consistently high 
standard of generous giving to the Red Cross. I hope this fine record 
will continue this year under the leadership of the Honorable Arthur E. 
Summerfield, the Postmaster General, whom I have designated as Chair- 
man of the Government Unit in the 1954 Metropolitan Area Red Cross 
Fund Campaign. His own wealth of experience in community welfare 
challenges the hearty and active cooperation of each department head. 
To give him your support most effectively, you will undoubtedly want to 
create within your department a Red Cross organization adequate to 
give everyone an opportunity to contribute and attain the goal desired 
from your department. Likewise I hope that you will request all per- 
sonnel in your departmental field offices to help the Red Cross by generous 
cooperation with their local Red Cross Chapters. 

The Red Cross through its purposes, its work and the people who 
belong to it, helps us to realize man is made of nobler qualities than 
those of selfishness, greed and personal advantage. The Red Cross gives 
practical application in a vast human field to those great and noble 
virtues of man that are the richest heritage from the Almighty. 

Dwight D. Eisenhower 



<J 2 Public Papers of the Presidents 

2 fl Radio and Television Address to the 
American People on the Administration's Purposes 
and Accomplishments. January 4, 1954 

[Delivered from the Broadcast Room at the White House at 9:30 p.m. ] 

My fellow Americans: 

Tonight, I would like to talk to you as individuals and as American 
families — deeply concerned with the realities of living. We have had a 
year of progress and can look ahead with confidence. 

Our problems are many. We wonder about our Nation's security — 
the great standing question of peace in the world — and what this may 
mean in the lives and careers of our sons and daughters. All of us are 
concerned with the cost of food and clothing and shelter, with taxes and 
income and savings and jobs, with the schooling, the health and the 
future of our children and grandchildren, with all the problems and 
purposes and great hopes that fill our lives. 

Believe me — these realities of living, every one of them, are the deep 
concern, too, of this administration. 

From time to time, as we tackle Government's part in the solution of 
these problems, members of the administration — myself and others — will 
report to you about our aims, our actions, our progress, and what is being 
accomplished. This kind of reporting, it seems to me, is one of the great 
responsibilities of a government which, like ours, rests on the consent of 
the people. We know that an informed and alert people is the backbone 
of the free system in which this Republic was conceived and under which 
it has so greatly prospered. 

One such report — and a most important one — I shall deliver to the 
Congress on Thursday of this week: the State of the Union Message. 
It will present an outline of this administration's legislative program. 
Many major phases of the national economy and activities of your 
Government will be discussed in this report. 

I believe you will find it, and the projected program it includes, of 
great personal interest to you. It will affect your lives — we believe for 
the better — certainly it represents the philosophy of government by and 
for the people. 

In the preparation of the program to be presented in the State of the 



Dwight D. Eisenhower, ig$4 <I 2 

Union Message I am consulting with many senior members of the 
Congress and have considered the views of a great many other thoughtful 
persons. 

And I hope that this program, because of its purpose of promoting 
the welfare of all our people, will enlist the support of all of you, regard- 
less of party. It is my earnest hope that the Congress will take quick 
and effective steps to enact the measures I will recommend. 

This evening, I shall not preview the message to be delivered to the 
Congress on Thursday. However, it is entirely proper that I should 
review, briefly, the aims and purposes of this administration — in what 
direction we are headed and how we propose to get there. And, also 
briefly, some accomplishments of the past 12 months. 

This administration believes that Government — from top to bottom — 
must be manned by men and women of brains, conscience, heart, and 
integrity. We believe that these men and women must have an intellec- 
tual grasp of the problems before them that is matched by their devotion 
to what is just and humane. Such people are true public servants; not 
bureaucrats. 

Given such men and women, your Government will be unimpeachable 
in honesty and decency and dignity. It will be an example in solvency 
and efficiency for all America to follow; and a shining proof to all the 
world that freedom and strength and a widely shared prosperity go 
hand-in-hand. 

We believe that with such public servants, and backed by your ap- 
proval, we can take the forward road to a stronger and better America. 

This administration believes that no American — no one group of 
Americans — can truly prosper unless all Americans prosper. We are 
one family made up of millions of Americans with the same hopes for 
a full and happy life. We must not become a nation divided into factions, 
or special groups and hostile cliques. 

We believe that the slum, the out-dated highway, the poor school 
system, deficiencies in health protection, the loss of a job, and the fear 
of poverty in old age — in fact, any real injustice in the business of living — 
penalizes us all. And this administration is committed to help you 
prevent them. 

"Help" is the key word of this administration and of the program it 
presents to the Congress this Thursday. What do we mean by help? 



<J 2 Public Papers of the Presidents 

We do not mean monuments to costly and intolerant bureaucracy. We 
do not mean a timid unwillingness to act. We mean service — service 
that is effective, service that is prompt, service that is single-mindedly 
devoted to solving the problem. 

You make up the communities of this country, where the everlasting 
job of building a stronger and better America must have its roots. We 
will seek to give national effect to your aims and aspirations. To do 
so, we rely on the good sense and local knowledge of the community 
and will therefore decentralize administration as much as possible so 
that the services of Government may be closer to you and thus serve 
you better. 

For we know that you are far more knowledgeable than Washington 
as to the nature of your local needs. We know also that, as the local 
partners in any enterprise, you will be incessantly concerned with ef- 
ficiency and economy — something which we are promoting in all Federal 
enterprises. 

I know that you have unbounded confidence in the future of America. 
You need only the assurance that Government will neither handcuff 
your enterprise nor withdraw into a smug bureaucratic indifference to 
the welfare of American citizens, particularly those who, through no 
fault of their own, are in a period of adversity. 

For this administration, I give you that pledge. 

So much for our beliefs and the aims and purposes of this adminis- 
tration. What has been accomplished in the year just past? Let me 
list a few of these in the briefest possible fashion: 

i. The fighting and the casualties in Korea mercifully have come to 
an end. We can therefore take more satisfaction in other blessings of 
our daily life. 

2. Our own defenses and those of the free world have been strength- 
ened against Communist aggression. 

3. The highest security standards are being insisted upon for those 
employed in Government service. 

4. Requests for new appropriations have been reduced by 13 billion 
dollars. 

5. Tax reductions which go into effect this month have been made 
financially feasible by substantial reductions in expenditures. 

6. Strangling controls on our economy have been promptly removed. 



Dwight D. Eisenhower, ig54 ^ 2 

7. The fantastic paradox of farm prices, on a toboggan slide while 
living costs soared skyward, has ceased. 

8. The cheapening by inflation of every dollar you earn, every savings 
account and insurance policy you own, and every pension payment you 
receive has been halted. 

9. The proper working relationship between the executive and legis- 
lative branches of the Federal Government has been made effective. 

10. Emergency immigration legislation has been enacted. 

1 1 . A strong and consistent policy has been developed toward gaining 
and retaining the initiative in foreign affairs. 

12. A plan to harness atomic energy to the peaceful service of man- 
kind, and to help end the climate of suspicion and fear that excites 
nations to war, has been proposed to the world. 

And there is still another accomplishment. Perhaps this one should 
more properly be called groundwork for an accomplishment. 

It is groundwork that has been laid by this administration in the 
strong belief that the Federal Government should be prepared at all 
times — ready, at a moment's notice — to use every proper means to sustain 
the basic prosperity of our people. 

I therefore give you this assurance: 

Every legitimate means available to the Federal Government that can 
be used to sustain that prosperity is being used and will continue to be 
used as necessary. 

This administration believes that we must not and need not tolerate 
a boom-and-bust America. We believe that America's prosperity does 
not and need not depend upon war or the preparation for war. We know 
that this great country can make the adjustments necessary to meet 
changing circumstances without encouraging disaster and without bring- 
ing about the economic chaos for which the Communists hope. Our 
system is the greatest wealth producer in the world — in terms of the 
life and the well-being of every citizen. 

Sound planning and aggressive enterprise must, of course, be accom- 
panied by the indispensable ingredient — a persistent and reasoned faith 
in the growth and progress of America, a faith which cannot be shaken 
by self-appointed peddlers of gloom and doom. 

Such are a few of the accomplishments of the past year. They 
promise a new year even more fruitful to the security of the Nation and 
the welfare of its people. 

5 



<J 2 Public Papers of the Presidents 

Now, as all of you know, when you set out to build a house, you first 
must plan and solidly construct a foundation on which to put it — if you 
hope to live in that house in comfort and security. Since January 20th 
of last year we have planned and built the foundation for our forth- 
coming legislative program, constructed under the aims and purposes 
I have been discussing with you tonight. 

It is my legal duty to present this program, in the State of the Union 
Message, to your elected representatives, the members of the House of 
Representatives and of the Senate. 

It is their duty, in turn, to give it careful study, before taking action 
on its various recommendations. 

It is your right to give it the same thoughtful consideration. 

It is a program that does not deal in pie-in-the-sky promises to all, nor 
in bribes to a few, nor in threats to any. It is a program inspired by 
zeal for the common good, dedicated to the welfare of every American 
family — whatever its means of livelihood may be, or its social position, 
or its ancestral strain, or its religious affiliation. 

I am confident that it will meet with your approval. 

When the State of the Union Message is delivered to the Congress 
on Thursday, I hope you will agree with me that it presents an oppor- 
tunity which will enable us, as a people — united and strong — to push 
ever forward and to demonstrate to the world the great and good power 
of free men and women. 

We will build a stronger and better America — of greater security and 
increasing prosperity for all. 

3 §f Annual Message to the Congress on the 
State of the Union. January 7, 1 954 

[ Delivered in person before a joint session ] 

Mr. President, Mr. Speaker, Members of the Eighty-third Congress: 
It is a high honor again to present to the Congress my views on the 

state of the Union and to recommend measures to advance the security, 

prosperity, and well-being of the American people. 

All branches of this Government — and I venture to say both of our 

great parties — can support the general objective of the recommendations 

6 



Dwight D. Eisenhower, ig$4 <fl 3 

I make today, for that objective is the building of a stronger America. 
A nation whose every citizen has good reason for bold hope; where effort 
is rewarded and prosperity is shared; where freedom expands and peace 
is secure — that is what I mean by a stronger America. 

Toward this objective a real momentum has been developed during 
this Administration's first year in office. We mean to continue that 
momentum and to increase it. We mean to build a better future for 
this nation. 

Much for which we may be thankful has happened during the past 
year. 

First of all we are deeply grateful that our sons no longer die on the 
distant mountains of Korea. Although they are still called from our 
homes to military service, they are no longer called to the field of battle. 

The nation has just completed the most prosperous year in its history. 
The damaging effect of inflation on the wages, pensions, salaries and 
savings of us all has been brought under control. Taxes have begun to 
go down. The cost of our government has been reduced and its work 
proceeds with some 183,000 fewer employees; thus the discouraging trend 
of modern governments toward their own limitless expansion has in our 
case been reversed. The cost of armaments becomes less oppressive as 
we near our defense goals; yet we are militarily stronger every day. 
During the year, creation of the new Cabinet Department of Health, 
Education, and Welfare symbolized the government's permanent concern 
with the human problems of our citizens. 

Segregation in the armed forces and other Federal activities is on the 
way out. We have also made progress toward its elimination in the 
District of Columbia. These are steps in the continuing effort to eliminate 
inter-racial difficulty. 

Some developments beyond our shores have been equally encouraging. 
Communist aggression, halted in Korea, continues to meet in Indo-china 
the vigorous resistance of France and the Associated States, assisted by 
timely aid from our country. In West Germany, in Iran, and in other 
areas of the world, heartening political victories have been won by the 
forces of stability and freedom. Slowly but surely, the free world gathers 
strength. Meanwhile, from behind the iron curtain, there are signs that 
tyranny is in trouble and reminders that its structure is as brittle as its 
surface is hard. 

There has been in fact a great strategic change in the world during 

7 



<][ 3 Public Papers of the Presidents 

the past year. That precious intangible, the initiative, is becoming 
ours. Our policy, not limited to mere reaction against crises provoked 
by others, is free to develop along lines of our choice not only abroad, 
but also at home. As a major theme for American policy during the 
coming year, let our joint determination be to hold this new initiative 
and to use it. 

We shall use this initiative to promote three broad purposes: First, 
to protect the freedom of our people; second, to maintain a strong, 
growing economy; third, to concern ourselves with the human problems 
of the individual citizen. 

Only by active concern for each of these purposes can we be sure 
that we are on the forward road to a better and a stronger America. 
All my recommendations today are in furtherance of these three purposes. 

I. Foreign Affairs 

American freedom is threatened so long as the world Communist 
conspiracy exists in its present scope, power and hostility. More closely 
than ever before, American freedom is interlocked with the freedom of 
other people. In the unity of the free world lies our best chance to reduce 
the Communist threat without war. In the task of maintaining this 
unity and strengthening all its parts, the greatest responsibility falls 
naturally on those who, like ourselves, retain the most freedom and 
strength. 

We shall, therefore, continue to advance the cause of freedom on 
foreign fronts. 

In the Far East, we retain our vital interest in Korea. We have 
negotiated with the Republic of Korea a mutual security pact, which 
develops our security system for the Pacific and which I shall promptly 
submit to the Senate for its consent to ratification. We are prepared 
to meet any renewal of armed aggression in Korea. We shall maintain 
indefinitely our bases in Okinawa. I shall ask the Congress to authorize 
continued material assistance to hasten the successful conclusion of the 
struggle in Indo-china. This assistance will also bring closer the day 
when the Associated States may enjoy the independence already assured 
by France. We shall also continue military and economic aid to the 
Nationalist Government of China. 

In South Asia, profound changes are taking place in free nations 
which are demonstrating their ability to progress through democratic 

8 



Dwight D. Eisenhower, IQ54 ^ 3 

methods. They provide an inspiring contrast to the dictatorial methods 
and backward course of events in Communist China. In these contin- 
uing efforts, the free peoples of South Asia can be assured of the support 
of the United States. 

In the Middle East, where tensions and serious problems exist, we will 
show sympathetic and impartial friendship. 

In Western Europe our policy rests firmly on the North Atlantic 
Treaty. It will remain so based as far ahead as we can see. Within its 
organization, the building of a united European community, including 
France and Germany, is vital to a free and self-reliant Europe. This 
will be promoted by the European Defense Community which offers 
assurance of European security. With the coming of unity to Western 
Europe, the assistance this Nation can render for the security of Europe 
and the free world will be multiplied in effectiveness. 

In the Western Hemisphere we shall continue to develop harmonious 
and mutually beneficial cooperation with our neighbors. Indeed, solid 
friendship with all our American neighbors is a cornerstone of our entire 
policy. 

In the world as a whole, the United Nations, admittedly still in a state 
of evolution, means much to the United States. It has given uniquely 
valuable services in many places where violence threatened. It is the 
only real world forum where we have the opportunity for international 
presentation and rebuttal. It is a place where the nations of the world 
can, if they have the will, take collective action for peace and justice. 
It is a place where the guilt can be squarely assigned to those who fail 
to take all necessary steps to keep the peace. The United Nations 
deserves our continued firm support. 

FOREIGN ASSISTANCE AND TRADE 

In the practical application of our foreign policy, we enter the field of 
foreign assistance and trade. 

Military assistance must be continued. Technical assistance must be 
maintained. Economic assistance can be reduced. However, our eco- 
nomic programs in Korea and in a few other critical places of the world 
are especially important, and I shall ask Congress to continue them in 
the next fiscal year. 

The forthcoming Budget Message will propose maintenance of the 
Presidential power of transferability of all assistance funds and will ask 



fj 3 Public Papers of the Presidents 

authority to merge these funds with the regular defense funds. It will 
also propose that the Secretary of Defense have primary responsibility 
for the administration of foreign military assistance in accordance with 
the policy guidance of the Secretary of State. 

The fact that we can now reduce our foreign economic assistance in 
many areas is gratifying evidence that its objectives are being achieved. 
By continuing to surpass her prewar levels of economic activity, Western 
Europe gains self-reliance. Thus our relationship enters a new phase 
which can bring results beneficial to our taxpayers and our allies alike, 
if still another step is taken. 

This step is the creation of a healthier and freer system of trade and 
payments within the free world — a system in which our allies can earn 
their own way and our own economy can continue to flourish. The 
free world can no longer afford the kinds of arbitrary restraints on trade 
that have continued ever since the war. On this problem I shall submit 
to the Congress detailed recommendations, after our Joint Commission 
on Foreign Economic Policy has made its report. 

ATOMIC ENERGY PROPOSAL 

As we maintain our military strength during the coming year and 
draw closer the bonds with our allies, we shall be in an improved posi- 
tion to discuss outstanding issues with the Soviet Union. Indeed we 
shall be glad to do so whenever there is a reasonable prospect of con- 
structive results. In this spirit the atomic energy proposals of the United 
States were recently presented to the United Nations General Assembly. 
A truly constructive Soviet reaction will make possible a new start to- 
ward an era of peace, and away from the fatal road toward atomic war. 

DEFENSE 

Since our hope is peace, we owe ourselves and the world a candid 
explanation of the military measures we are taking to make that peace 
secure. 

As we enter this new year, our military power continues to grow. 
This power is for our own defense and to deter aggression. We shall 
not be aggressors, but we and our allies have and will maintain a massive 
capability to strike back. 

Here are some of the considerations in our defense planning: 

First, while determined to use atomic power to serve the usages of 

10 



Dwight D. Eisenhower, IQ54 Cfl 3 

peace, we take into full account our great and growing number of nuclear 
weapons and the most effective means of using them against an aggressor 
if they are needed to preserve our freedom. Our defense will be stronger 
if, under appropriate security safeguards, we share with our allies certain 
knowledge of the tactical use of our nuclear weapons. I urge the Con- 
gress to provide the needed authority. 

Second, the usefulness of these new weapons creates new relationships 
between men and materials. These new relationships permit economies 
in the use of men as we build forces suited to our situation in the world 
today. As will be seen from the Budget Message on January 21, the 
airpower of our Navy and Air Force is receiving heavy emphasis. 

Third, our armed forces must regain maximum mobility of action. 
Our strategic reserves must be centrally placed and readily deployable 
to meet sudden aggression against ourselves and our allies. 

Fourth, our defense must rest on trained manpower and its most 
economical and mobile use. A professional corps is the heart of any 
security organization. It is necessarily the teacher and leader of those 
who serve temporarily in the discharge of the obligation to help defend 
the Republic. Pay alone will not retain in the career service of our 
armed forces the necessary numbers of long-term personnel. I strongly 
urge, therefore, a more generous use of other benefits important to service 
morale. Among these are more adequate living quarters and family 
housing units and medical care for dependents. 

Studies of military manpower have just been completed by the National 
Security Training Commission and a Committee appointed by the Direc- 
tor of the Office of Defense Mobilization. Evident weaknesses exist in 
the state of readiness and organization of our reserve forces. Measures 
to correct these weaknesses will be later submitted to the Congress. 

Fifth, the ability to convert swiftly from partial to all-out mobilization 
is imperative to our security. For the first time, mobilization officials 
know what the requirements are for 1,000 major items needed for mili- 
tary uses. These data, now being related to civilian requirements and 
our supply potential, will show us the gaps in our mobilization base. 
Thus we shall have more realistic plant-expansion and stockpiling goals. 
We shall speed their attainment. This Nation is at last to have an 
up-to-date mobilization base — the foundation of a sound defense program. 

Another part of this foundation is, of course, our continental transport 
system. Some of our vital heavy materials come increasingly from 

11 



<][ 3 Public Papers of the Presidents 

Canada. Indeed our relations with Canada, happily always close, 
involve more and more the unbreakable ties of strategic interdependence. 
Both nations now need the St. Lawrence Seaway for security as well as 
for economic reasons. I urge the Congress promptly to approve our 
participation in its construction. 

Sixth, military and non-military measures for continental defense must 
be and are being strengthened. In the current fiscal year we are allo- 
cating to these purposes an increasing portion of our effort, and in the 
next fiscal year we shall spend nearly a billion dollars more for them 
than in 1953. 

An indispensable part of our continental security is our civil defense 
effort. This will succeed only as we have the complete cooperation of 
State Governors, Mayors, and voluntary citizen groups. With their 
help we can advance a cooperative program which, if an attack should 
come, would save many lives and lessen destruction. 

The defense program recommended in the 1955 Budget is consistent 
with all of the considerations which I have just discussed. It is based 
on a new military program unanimously recommended by the Joint 
Chiefs of Staff and approved by me following consideration by the Na- 
tional Security Council. This new program will make and keep America 
strong in an age of peril. Nothing should bar its attainment. 

The international and defense policies which I have outlined will 
enable us to negotiate from a position of strength as we hold our resolute 
course toward a peaceful world. We now turn to matters which are 
normally characterized as domestic, well realizing that what we do abroad 
affects every problem at home — from the amount of taxes to our very 
state of mind. 

INTERNAL SECURITY 

Under the standards established for the new employee security pro- 
gram, more than 2,200 employees have been separated from the Federal 
government. Our national security demands that the investigation of 
new employees and the evaluation of derogatory information respecting 
present employees be expedited and concluded at the earliest possible 
date. I shall recommend that the Congress provide additional funds 
where necessary to speed these important procedures. 

From the special employment standards of the Federal government 
I turn now to a matter relating to American citizenship. The subver- 



12 



Dwight D. Eisenhower, 1954 <J 3 

sive character of the Communist Party in the United States has been 
clearly demonstrated in many ways, including court proceedings. We 
should recognize by law a fact that is plain to all thoughtful citizens — 
that we are dealing here with actions akin to treason — that when a citizen 
knowingly participates in the Communist conspiracy he no longer holds 
allegiance to the United States. 

I recommend that Congress enact legislation to provide that a citizen 
of the United States who is convicted in the courts of hereafter conspiring 
to advocate the overthrow of this government by force or violence be 
treated as having, by such act, renounced his allegiance to the United 
States and forfeited his United States citizenship. 

In addition, the Attorney General will soon appear before your Com- 
mittees to present his recommendations for needed additional legal weap- 
ons with which to combat subversion in our country and to deal with 
the question of claimed immunity. 

II. Strong Economy 

I turn now to the second great purpose of our government: Along 
with the protection of freedom, the maintenance of a strong and growing 
economy. 

The American economy is one of the wonders of the world. It under- 
girds our international position, our military security, and the standard 
of living of every citizen. This Administration is determined to keep 
our economy strong and to keep it growing. 

At this moment we are in transition from a wartime to a peacetime 
economy. I am confident that we can complete this transition without 
serious interruption in our economic growth. But we shall not leave 
this vital matter to chance. Economic preparedness is fully as important 
to the nation as military preparedness. 

Subsequent special messages and the economic report on January 28 
will set forth plans of the Administration and its recommendations for 
Congressional action. These will include flexible credit and debt man- 
agement policies; tax measures to stimulate consumer and business spend- 
ing; suitable lending, guaranteeing, insuring, and grant-in-aid activities; 
strengthened old-age and unemployment insurance measures; improved 
agricultural programs; public-works plans laid well in advance; enlarged 
opportunities for international trade and investment. This mere enu- 



13 



<][ 3 Public Papers of the Presidents 

meration of these subjects implies the vast amount of study, coordination, 
and planning, to say nothing of authorizing legislation, that altogether 
make our economic preparedness complete. 

If new conditions arise that require additional administrative or legis- 
lative action, the Administration will still be ready. A government 
always ready, as this is, to take well-timed and vigorous action, and a 
business community willing, as ours is, to plan boldly and with confi- 
dence, can between them develop a climate assuring steady economic 
growth. 

THE BUDGET 

I shall submit to the Congress on January 2 1 the first budget prepared 
by this Administration, for the period July 1, 1954, through June 1955. 

This budget is adequate to the current needs of the government. It 
recognizes that a Federal budget should be a stabilizing factor in the 
economy. Its tax and expenditure programs will foster individual in- 
itiative and economic growth. 

Pending the transmittal of my Budget Message, I shall mention here 
only a few points about our budgetary situation. 

First, one of our initial acts was to revise, with the cooperation of the 
Congress, the Budget prepared before this Administration took office. 
Requests for new appropriations were greatly reduced. In addition, 
the spending level provided in that Budget for the current fiscal year has 
been reduced by about $7,000,000,000. In the next fiscal year we 
estimate a further reduction in expenditures of more than $5,000,000,000. 
This will reduce the spending level over the two fiscal years by more than 
$12,000,000,000. We are also reducing further our requests for new 
appropriations. 

Second, despite the substantial loss of revenue in the coming fiscal 
year, resulting from tax reductions now in effect and tax adjustments 
which I shall propose, our reduced spending will move the new budget 
closer to a balance. 

Third, by keeping new appropriation requests below estimated reve- 
nues, we continue to reduce the tremendous accumulation of unfinanced 
obligations incurred by the Government under past appropriations. 

Fourth, until those claims on our Government's revenues are further 
reduced, the growth in the public debt cannot be entirely stopped. Be- 
cause of this — because the government's bills have to be paid every 

14 



Dwight D. Eisenhower, 1954 ^ 3 

month, while the tax money to pay them comes in with great unevenness 
within the fiscal year — and because of the need for flexibility to manage 
this enormous debt, I find it necessary to renew my request for an increase 
in the statutory debt limit. 

TAXES 

The new budget provides for a lower level of taxation than has pre- 
vailed in preceding years. Six days ago individual income taxes were 
reduced and the excess profits tax expired. These tax reductions are 
justified only because of the substantial reductions we already have made 
and are making in governmental expenditures. As additional reduc- 
tions in expenditures are brought gradually but surely into sight, further 
reductions in taxes can and will be made. When budget savings and 
sound governmental financing are assured, tax burdens should be reduced 
so that taxpayers may spend their own money in their own way. 

While we are moving toward lower levels of taxation we must thor- 
oughly revise our whole tax system. The groundwork for this revision 
has already been laid by the Committee on Ways and Means of the 
House of Representatives, in close consultation with the Department of 
the Treasury. We should now remove the more glaring tax inequities, 
particularly on small taxpayers; reduce restraints on the growth of small 
business; and make other changes that will encourage initiative, enter- 
prise and production. Twenty-five recommendations toward these ends 
will be contained in my budget message. 

Without attempting to summarize these manifold reforms, I can here 
illustrate their tendency. For example, we propose more liberal tax 
treatment for dependent children who work, for widows or widowers 
with dependent children, and for medical expenses. For the business 
that wants to expand or modernize its plant, we propose liberalized tax 
treatment of depreciation, research and development expenses, and 
retained earnings. 

Because of the present need for revenue the corporation income tax 
should be kept at the current rate of 52% for another year, and the 
excise taxes scheduled to be reduced on April first, including those on 
liquor, tobacco, gasoline and automobiles, should be continued at present 
rates. 

Immediate extension of the Renegotiation Act of 1951 is also needed 
to eliminate excessive profits and to prevent waste of public funds in 
the purchase of defense materials. 

15 



<][ 3 Public Papers of the Presidents 

AGRICULTURE 

The well being of our 160 million people demands a stable and 
prosperous agriculture. Conversely, every farmer knows he cannot 
prosper unless all America prospers. As we seek to promote increases 
in our standard of living, we must be sure that the farmer fairly shares 
in that increase. Therefore, a farm program promoting stability and 
prosperity in all elements of our agriculture is urgently needed. 

Agricultural laws now in effect successfully accomplished their war- 
time purpose of encouraging maximum production of many crops. 
Today, production of these crops at such levels far exceeds present de- 
mand. Yet the laws encouraging such production are still in effect. 
The storage facilities of the Commodity Credit Corporation bulge with 
surplus stocks of dairy products, wheat, cotton, corn, and certain vege- 
table oils; and the Corporation's presently authorized borrowing author- 
ity — $6,750,000,000 — is nearly exhausted. Some products, priced out 
of domestic markets, and others, priced out of world markets, have piled 
up in government hands. In a world in which millions of people are 
hungry, destruction of food would, of course, be unconscionable. Yet 
surplus stocks continue to threaten the market and in spite of the acreage 
controls authorized by present law, surpluses will continue to accumulate. 

We confront two alternatives. The first is to impose still greater 
acreage reductions for some crops and apply rigid Federal controls over 
the use of the diverted acres. This will regiment the production of every 
basic agricultural crop. It will place every producer of those crops 
under the domination and control of the Federal government in Wash- 
ington. This alternative is contrary to the fundamental interests, not 
only of the farmer, but of the Nation as a whole. Nor is it a real 
solution to the problem facing us. 

The second alternative is to permit the market price for these agri- 
cultural products gradually to have a greater influence on the planning 
of production by farmers, while continuing the assistance of the govern- 
ment. This is the sound approach. To make it effective, surpluses 
existing when the new program begins must be insulated from the normal 
channels of trade for special uses. These uses would include school lunch 
programs, disaster relief, emergency assistance to foreign friends, and of 
particular importance the stockpiling of reserves for a national emergency. 

Building on the agricultural laws of 1948 and 1949, we should estab- 

16 



Dwight D. Eisenhower, ig$4 ^ 3 

lish a price support program with enough flexibility to attract the pro- 
duction of needed supplies of essential commodities and to stimulate the 
consumption of those commodities that are flooding American markets. 
Transition to modernized parity must be accomplished gradually. In 
no case should there be an abrupt downward change in the dollar level 
or in the percentage level of price supports. 

Next Monday I shall transmit to the Congress my detailed recom- 
mendations embodying this approach. They have been developed 
through the cooperation of innumerable individuals vitally interested in 
agriculture. My special message on Monday will briefly describe the 
consultative and advisory processes to which this whole program has been 
subjected during the past ten months. 

I have chosen this farm program because it will build markets, protect 
the consumers' food supply, and move food into consumption instead of 
into storage. It is a program that will remove the threat to the farmer 
of these overhanging surpluses, a program, also, that will stimulate pro- 
duction when a commodity is scarce and encourage consumption when 
nature is bountiful. Moreover, it will promote the individual freedom, 
responsibility, and initiative which distinguish American agriculture. 
And, by helping our agriculture achieve full parity in the market, it 
promises our farmers a higher and steadier financial return over the years 
than any alternative plan. 

CONSERVATION 

Part of our Nation's precious heritage is its natural resources. It is the 
common responsibility of Federal, state, and local governments to improve 
and develop them, always working in the closest harmony and partnership. 

All Federal conservation and resource development projects are being 
reappraised. Sound projects now under way will be continued. New 
projects in which the Federal Government has a part must be economi- 
cally sound, with local sharing of cost wherever appropriate and feasible. 
In the next fiscal year work will be started on twenty-three projects that 
meet these standards. The Federal Government will continue to con- 
struct and operate economically sound flood control, power, irrigation 
and water supply projects wherever these projects are beyond the capacity 
of local initiative, public or private, and consistent with the needs of the 
whole Nation. 

Our conservation program will also take into account the important 

i7 



€[[ g Public Papers of the Presidents 

role played by farmers in protecting our soil resources. I recommend 
enactment of legislation to strengthen agricultural conservation and up- 
stream flood prevention work, and to achieve a better balance with major 
flood control structures in the down-stream areas. 

Recommendations will be made from time to time for the adoption 
of: 

A uniform and consistent water resources policy; 

A revised public lands policy; and 

A sound program for safeguarding the domestic production of critical 
and strategic metals and minerals. 

In addition we shall continue to protect and improve our national 
forests, parks, monuments and other natural and historic sites, as well 
as our fishery and wildlife resources. I hope that pending legislation 
to improve the conservation and management of publicly-owned grazing 
lands in national forests will soon be approved by the Congress. 

NATIONAL HIGHWAYS 

To protect the vital interest of every citizen in a safe and adequate 
highway system, the Federal Government is continuing its central role 
in the Federal Aid Highway Program. So that maximum progress can 
be made to overcome present inadequacies in the Interstate Highway 
System, we must continue the Federal gasoline tax at two cents per gallon. 
This will require cancellation of the J40 decrease which otherwise will 
become effective April ist, and will maintain revenues so that an ex- 
panded highway program can be undertaken. 

When the Commission on Intergovernmental Relations completes its 
study of the present system of financing highway construction, I shall 
promptly submit it for consideration by the Congress and the governors 
of the states. 

POST OFFICE 

It is apparent that the substantial savings already made, and to be 
made, by the Post Office Department cannot eliminate the postal deficit. 
I recommend, therefore, that the Congress approve the bill now pending 
in the House of Representatives providing for the adjustment of certain 
postal rates. To handle the long term aspects of this, I also recommend 
that the Congress create a permanent commission to establish fair and 
reasonable postal rates from time to time in the future. 

18 



Dwight D. Eisenhower, 1954 *J 3 

III. Human Problems 
Along with the protection of freedom and maintenance of a strong 
and growing economy, this Administration recognizes a third great pur- 
pose of government: concern for the human problems of our citizens. 
In a modern industrial society, banishment of destitution and cushioning 
the shock of personal disaster on the individual are proper concerns of 
all levels of government, including the federal government. This is 
especially true where remedy and prevention alike are beyond the indi- 
vidual's capacity. 

LABOR AND WELFARE 

Of the many problems in this area, those I shall first discuss are of 
particular concern to the members of our great labor force, who with 
their heads, hearts and hands produce so much of the wealth of our 
country. 

Protection against the hazards of temporary unemployment should 
be extended to some 6 J/2 millions of workers, including civilian Federal 
workers, who now lack this safeguard. Moreover, the Secretary of 
Labor is making available to the states studies and recommendations 
in the fields of weekly benefits, periods of protection and extension of 
coverage. The Economic Report will consider the related matter of 
minimum wages and their coverage. 

The Labor Management Relations Act of 1947 is basically a sound 
law. However, six years of experience have revealed that in some 
respects it can be improved. On January 11, I shall forward to the 
Congress suggestions for changes designed to reinforce the basic objec- 
tives of the Act. 

Our basic social security program, the Old-Age and Survivors Insur- 
ance system, to which individuals contribute during their productive 
years and receive benefits based on previous earnings, is designed to 
shield them from destitution. Last year I recommended extension of 
the social insurance system to include more than 10,000,000 additional 
persons. I ask that this extension soon be accomplished. This and 
other major improvements in the insurance system will bring substantial 
benefit increases and broaden the membership of the insurance system, 
thus diminishing the need for Federal grants-in-aid for such purposes. 
A new formula will therefore be proposed, permitting progressive re- 
duction in such grants as the need for them declines. 

19 



<f 3 Public Papers of the Presidents 

Federal grant-in-aid welfare programs, now based on widely varying 
formulas, should be simplified. Concrete proposals on fourteen of them 
will be suggested to the appropriate Committees. 

The program for rehabilitation of the disabled especially needs 
strengthening. Through special vocational training, this program pres- 
ently returns each year some 60,000 handicapped individuals to produc- 
tive work. Far more disabled people can be saved each year from 
idleness and dependence if this program is gradually increased. My 
more detailed recommendations on this and the other social insurance 
problems I have mentioned will be sent to the Congress on January 14th. 

HEALTH 

I am flatly opposed to the socialization of medicine. The great need 
for hospital and medical services can best be met by the initiative of 
private plans. But it is unfortunately a fact that medical costs are rising 
and already impose severe hardships on many families. The Federal 
Government can do many helpful things and still carefully avoid the 
socialization of medicine. 

The Federal Government should encourage medical research in its 
battle with such mortal diseases as cancer and heart ailments, and should 
continue to help the states in their health and rehabilitation programs. 
The present Hospital Survey and Construction Act should be broadened 
in order to assist in the development of adequate facilities for the chron- 
ically ill, and to encourage the construction of diagnostic centers, rehabili- 
tation facilities, and nursing homes. The war on disease also needs a 
better working relationship between Government and private initiative. 
Private and non-profit hospital and medical insurance plans are already 
in the field, soundly based on the experience and initiative of the people 
in their various communities. 

A limited Government reinsurance service would permit the private 
and non-profit insurance companies to offer broader protection to more 
of the many families which want and should have it. On January 18 
I shall forward to the Congress a special message presenting this Admin- 
istration's health program in its detail. 



EDUCATION 

Youth — our greatest resource — is being seriously neglected in a vital 
aspect. The nation as a whole is not preparing teachers or building 



20 



Dwight D. Eisenhower, ig$4 <J 3 

schools fast enough to keep up with the increase in our population. 

The preparation of teachers as, indeed, the control and direction of 
public education policy, is a state and local responsibility. However, the 
Federal Government should stand ready to assist states which demon- 
strably cannot provide sufficient school buildings. In order to appraise 
the needs, I hope that this year a conference on education will be held in 
each state, culminating in a national conference. From these conferences 
on education, every level of government — from the Federal Government 
to each local school board — should gain the information with which to 
attack this serious problem. 

HOUSING 

The details of a program to enlarge and improve the opportunities for 
our people to acquire good homes will be presented to the Congress by 
special message on January 25. 

This program will include: 

Modernization of the home mortgage insurance program of the Fed- 
eral Government; 

Redirection of the present system of loans and grants-in-aid to cities 
for slum clearance and redevelopment; 

Extension of the advantages of insured lending to private credit en- 
gaged in this task of rehabilitating obsolete neighborhoods; 

Insurance of long-term, mortgage loans, with small down payment for 
low-income families; and, until alternative programs prove more effective, 

Continuation of the public housing program adopted in the Housing 
Act of 1949. 

If the individual, the community, the State and federal governments 
will alike apply themselves, every American family can have a decent 
home. 

VETERANS ADMINISTRATION 

The internal reorganization of the Veterans Administration is pro- 
ceeding with my full approval. When completed, it will afford a single 
agency whose services, including medical facilities, will be better adapted 
to the needs of those 20,000,000 veterans to whom this Nation owes so 
much. 

SUFFRAGE 

My few remaining recommendations all relate to a basic right of our 
citizens — that of being represented in the decisions of the government. 

51986—60 5 2I 



fj 3 Public Papers of the Presidents 

I hope that the States will cooperate with the Congress in adopting 
uniform standards in their voting laws that will make it possible for our 
citizens in the armed forces overseas to vote. 

In the District of Columbia the time is long overdue for granting 
national suffrage to its citizens and also applying the principle of local 
self-government to the Nation's Capital. I urge the Congress to move 
promptly in this direction and also to revise District revenue measures 
to provide needed public works improvements. 

The people of Hawaii are ready for statehood. I renew my request 
for this legislation in order that Hawaii may elect its State officials and 
its representatives in Washington along with the rest of the country this 
fall. 

For years our citizens between the ages of 1 8 and 2 1 have, in time of 
peril, been summoned to fight for America. They should participate 
in the political process that produces this fateful summons. I urge Con- 
gress to propose to the States a constitutional amendment permitting 
citizens to vote when they reach the age of 18. 

Conclusion 

I want to add one final word about the general purport of these many 
recommendations. 

Our government's powers are wisely limited by the Constitution; but 
quite apart from those limitations, there are things which no govern- 
ment can do or should try to do. 

A government can strive, as ours is striving, to maintain an economic 
system whose doors are open to enterprise and ambition — those personal 
qualities on which economic growth largely depends. But enterprise 
and ambition are qualities which no government can supply. Fortu- 
nately no American government need concern itself on this score; our 
people have these qualities in good measure. 

A government can sincerely strive for peace, as ours is striving, and 
ask its people to make sacrifices for the sake of peace. But no govern- 
ment can place peace in the hearts of foreign rulers. It is our duty 
then to ourselves and to freedom itself to remain strong in all those 
ways — spiritual, economic, military — that will give us maximum safety 
against the possibility of aggressive action by others. 

No government can inoculate its people against the fatal materialism 
that plagues our age. Happily, our people, though blessed with more 

22 



Dwight D. Eisenhower, IQ54 ^ 4 

material goods than any people in history, have always reserved their 
first allegiance to the kingdom of the spirit, which is the true source of 
that freedom we value above all material things. 

But a government can try, as ours tries, to sense the deepest aspira- 
tions of the people, and to express them in political action at home and 
abroad. So long as action and aspiration humbly and earnestly seek 
favor in the sight of the Almighty, there is no end to America's forward 
road; there is no obstacle on it she will not surmount in her march 
toward a lasting peace in a free and prosperous world. 

Dwight D. Eisenhower 

note: This is the text of the document 2d sess.). 

which the President signed and trans- The Address as reported from the floor 

mitted to the Senate and the House of appears in the Congressional Record 

Representatives (H. Doc. 251, 83d Gong., (vol. 100, p. 62). 

4 ^ Special Message to the Congress on 
Agriculture. January n, 1954 

To the Congress of the United States: 

I submit herewith for the consideration of the Congress a number of 
recommendations affecting the Nation's agriculture. 

Part I 

The agricultural problem today is as serious and complex as any with 
which the Congress will deal in this session. Immediate action is needed 
to arrest the growing threat to our present agricultural program and to 
prevent the subsequent economic distress that could follow in our farming 
areas. 

I have given assurances to the American farmer that support of 
existing agricultural laws, including continuance through 1954 of price 
supports on basic commodities at 90 percent of parity, was a moral and 
legal commitment that must be upheld. Along with the fulfillment of 
this commitment, an unending effort has proceeded in the past twelve 
months to provide the American farmer his full share of the income pro- 
duced by a stable, prosperous country. This effort requires for success 
a new farm program adjusted to existing conditions in the Nation's 
agriculture. 

23 



^f 4 Public Papers of the Presidents 

This message presents to the Congress that new program. It is de- 
signed to achieve the stability and growth in income over the years to 
which our farmers are entitled and which the Nation must assure in 
the interest of all 160,000,000 of our people. 

STUDIES OF THE PROBLEM 

In constructing its program, this Administration resolved to get the 
benefit of the best thinking of the Nation's farmers, as well as that of its 
farm experts. Over sixty different survey groups, and more than 500 of 
the most eminent farm leaders in the country, have participated in these 
studies. Agricultural colleges and research institutions contributed their 
work and thought. Scores of producer, processor and trade groups, as 
well as national farm organizations, gave their findings and proposals. 
Mail from thousands of individual farmers, and opinion polls among 
farmers, have been analyzed and weighed. The bipartisan, broadly-rep- 
resentative National Agricultural Advisory Commission has steadily 
worked and consulted on the problem for the past twelve months. Nu- 
merous commodity organizations have been consulted. Many members 
of the Congress have shared their own rich experience in this effort. 
Accordingly, as promised a year ago, the most thorough and compre- 
hensive study ever made of the farm problem and of governmental farm 
programs has been completed. 

RECOMMENDATIONS BY COMMODITY 

The recommendations which have been reaped from all this inquiry 
are in the best traditions of bipartisan approach to the Nation's agricul- 
tural legislation. They recognize that each farm crop has its own prob- 
lems and that those problems require specific treatment. Accordingly 
Part II of this message presents detailed proposals for the treatment of 
sixteen commodities or commodity groups. I here confine myself to 
those aspects of the farm program in which all farmers and all citizens 
are equally concerned. 

SOME FUNDAMENTAL CONSIDERATIONS 

In its approach to this problem, the Administration has held to the 
following fundamentals: 

1 . A stable, prosperous and free agriculture is essential to the welfare 
of the United States. 

24 



Dwight D. Eisenhower, ig^4 (ft 4 

2. A farm program must fairly represent the interests of both pro- 
ducers and consumers. 

3. However large surpluses may be, food once produced must not be 
destroyed. Excessive stocks can be removed from commercial channels 
for constructive purposes that will benefit the people of the United States 
and our friends abroad. 

4. For many reasons farm products are subject to wider price fluctua- 
tions than are most other commodities. Moreover, the individual farmer 
or rancher has less control over the prices he receives than do producers 
in most other industries. Government price supports must, therefore, be 
provided in order to bring needed stability to farm income and farm 
production. 

5. A farm program first of all should assist agriculture to earn its 
proportionate share of the national income. It must likewise aim at 
stability in farm income. There should therefore be no wide year-to- 
year fluctuation in the level of price support. 

6. No single program can apply uniformly to the whole farm indus- 
try. Some farm products are perishable, some are not; some farms con- 
sume the products of other farms; some foods and fibres we export, some 
we import. A comprehensive farm program must be adaptable to these 
and other differences, and yet not penalize one group of farmers in order 
to benefit another. 

7. A workable farm program must give the Administration sufficient 
leeway to make timely changes in policies and methods, including price 
support levels, within limits established by law. This will enable the 
Administration to foresee and forestall new difficulties in our agriculture, 
rather than to attempt their legislative cure after they have arisen. 

8. Adjustment to a new farm program must be accomplished grad- 
ually in the interest of the Nation's farming population and in the in- 
terest of the economy of the Nation as a whole. 

9. Research and education, basic functions of the Department of 
Agriculture since its beginning, are still indispensable if our farmers are 
to improve their productivity and enlarge their markets. 

10. The soil, water, range and forest resources of the United States 
are the natural foundation of our national economy. From them come 
our food, most of our clothing, much of our shelter. How well we pro- 
tect and improve these resources will have a direct bearing on the future 
standard of living of the whole nation. 

25 



<][ 4 Public Papers of the Presidents 

THE PRESENT AGRICULTURAL SITUATION 

Present laws discourage increased consumption of wheat, corn, cotton 
and vegetable oils and encourage their excessive production. The huge 
and growing surpluses held by the government act as a constant threat 
to normal markets for these products. Thus, present law produces re- 
sults which in turn are hurtful to those whom the laws are intended to 
help. Partly because of these excessive stocks, farm income has fallen 
steadily over the past three years. 

The urgency in this situation may be illustrated by a few basic facts. 
During the past year, the investment of the Commodity Credit Corpora- 
tion in farm commodities more than doubled, increasing by about 
$2,500,000,000. As a result the financial obligations of the Corporation 
are pressing hard against the $6,750,000,000 limitation on its borrowing 
authority. In order to assure that present price support commitments 
on 1953 and 1954 crops will be covered, I shall request the Congress 
to take early action to restore the Corporation's capital losses as of June 
30, 1953, and to increase its borrowing authority to $8,500,000,000 
effective July 1, 1954. 

The Government's commodity holdings are enormous. It has invest- 
ments in more than $2,000,000,000 worth of wheat alone. This includes 
440,000,000 bushels owned outright. About 400,000,000 additional 
bushels are under loan, the greater share of which the government can 
expect to acquire. This is more than the domestic wheat requirements 
of the entire nation for a full year. 

The cotton carry-over will amount to about 9,600,000 bales. Here 
again the carry-over is approximately equal to the domestic needs of 
the entire nation for a full year. 

The carry-over of vegetable oils may be about 1,500,000,000 pounds, 
roughly double the carry-over that should normally be maintained. 

Because such tremendous supplies are already in hand, acreage allot- 
ments and marketing quotas have had to be applied to wheat and 
cotton. An appeal by the government for sharp acreage reductions for 
corn appears unavoidable. These allotments are expected to reduce 
the acreage planted to these crops in 1954 by the following amounts: 
wheat, 16.5 million acres; corn, between 5 and 6 million acres; 
cotton, 3.5 million acres. Without the most careful handling, a diver- 
sion within a single year of 25 million acres of productive crop land — 

26 



Dwight D. Eisenhower, ig§4 ^ 4 

about 8% of the total — from their accustomed use could have the most 
unfortunate impact on the total economy. 

Even these reductions probably will not appreciably lower the sur- 
pluses of wheat and cotton because of the likelihood of increased yields 
that will be sought from the reduced acreage, and because markets 
will continue to shrink as a consequence of rigid price supports. As for 
corn, it is estimated that enough diverted land will be used for oats, 
barley, and sorghums to hold total supplies of feed grains at present 
levels, thus largely offsetting the purpose of the corn acreage reduction. 
It is also expected that some 3,000,000 diverted acres may be planted 
to soybeans, thus aggravating the tremendous oversupply of vegetable 
oils. The likely production from other diverted acres threatens pro- 
ducers of potatoes, sugar beets, rice, alfalfa, flaxseed, vegetables and 
many other crops. Therefore, we must move without further delay to 
treat the fundamental causes of our present excess supplies of farm 
commodities. 

The Nation's agricultural problem is not one of general overproduc- 
tion: Consumer demand continues at or near record high levels; the 
average prices of farm products that lack direct price supports have 
been as high in recent years as those of price-supported products. The 
problem is rather one of unbalanced farm production, resulting in 
specific surpluses which are unavoidable under the present rigid price 
supports. The problem is complicated by the continuing loss of some 
of those foreign markets on which American agriculture has depended 
for a large part of its prosperity. 

MAJOR FEATURES OF FARM PROGRAM 

The new farm program here proposed is consistent with all the fore- 
going conditions and fundamental considerations. It has five major 
features : 

1. The new program should first be given an opportunity to start 
operating without the handicap of such large accumulated surpluses. 
This is to be done by setting aside certain quantities of our surplus 
commodities, eliminating them from price support computations. 

2. The 1948 and 1949 Agricultural Acts were soundly conceived and 
received bipartisan support. The principles on which they were based 
are particularly applicable to the agricultural industry today. Although 

27 



<][ 4 Public Papers of the Presidents 

based generally upon those principles, the proposed agricultural legisla- 
tion of 1954 contains certain new features, improvements and 
modifications. 

3. The amendment to the 1949 Agricultural Act providing for manda- 
tory rigid supports, attuned to war needs and demonstrably unworkable 
in peacetime, will be permitted to expire. After the 1954 crops the level 
of price supports for the basic commodities will be gradually related to 
supply, promising farmers greater stability of income. 

4. Modernized parity is to become effective for all commodities on 
January 1, 1956, as scheduled by law. Provision should be made for 
moving from the old to modernized parity in steps of five percentage 
points of the old parity per year until the change from old to modernized 
parity has been accomplished. 

5. The key element of the new program is a gradual adjustment to 
new circumstances and conditions. Application of modernized parity 
and the relation of basic crops to supply levels require a transition period 
to assure a stable farm economy. This transition should be accom- 
plished in a prudent and careful manner to avoid sharp adjustments 
which would threaten the dislocation of the program. 

6. In keeping with the policy of gradual transition, the Secretary of 
Agriculture will use his authority under the Agricultural Act of 1949 
to insure that year-to-year variations in price support levels will be 
limited. 

7. The authority of the Secretary of Agriculture to apply price sup- 
ports at more than 90 percent of parity when the national welfare or 
national security requires should be continued. 

PARITY AND PRICE SUPPORTS 

Under the provisions of the Agricultural Acts of 1948 and 1949 the 
government will: 

1. Support the prices of basic crops of those farmers who cooperate 
with acreage allotments and marketing quotas when such are in effect; 

2. Announce the price support level for various crops before those 
crops are planted, insofar as practicable; 

3. Support price levels at up to 90 percent of parity. For some 
products a schedule of price floors will also be provided as authorized 
by the 1949 Act, ranging from 75% to 90% of parity, according to the 
relationship of total to normal supply; and 

28 



Dwight D. Eisenhower, ig$4 <| 4 

4. Vary the price support level one percentage point for every two 
percentage points of variation in the total supply. If the supply is short, 
higher support levels will encourage production. If the supply is over- 
abundant, a lowered price will stimulate consumption. Thus, not only 
will a floor be placed under all basic crop prices, but variations in price 
and supply will tend to offset each other, and thus stabilize the income 
of the farmer. 

MODERNIZED PARITY 

Parity calculations for most commodities under the old formula are 
based upon price relationships and buying habits of 40 years ago. 
Because methods of farm production have changed markedly, the Con- 
gress has wisely brought the parity concept up to date. Modernized 
parity takes account of price relationships during the most recent 10 
years. It permits changes in farm technology and in consumer demand 
to express themselves in the level of price support and restores proper 
relationships among commodities. 

For the basic commodities, the law provides that until January 1, 
1956, the old or modernized parity, whichever is higher, shall be used. 
For all commodities except wheat, corn, cotton and peanuts, modernized 
parity is already in use. 

Equitable treatment of the various commodities requires that we should 
use modernized parity for all farm products as now provided by law, 
beginning January 1, 1956. 

INSULATION OF SURPLUSES FROM MARKETS 

Removal of the threat of huge surpluses of farm commodities from 
current markets is an essential part of the program here presented. 
Destruction of surplus commodities cannot be countenanced under any 
circumstances. They can be insulated from the commercial markets 
and used in constructive ways. Such uses will include school lunch 
programs, disaster relief, aid to the people of other countries, and stock- 
piled reserves at home for use in war or national emergency. 

I recommend that authority be provided to set aside reserves up to 
the value of $2,500,000,000 from the stocks presently held by the Com- 
modity Credit Corporation. Broad discretionary authority should be 
provided to manage these "frozen" reserves. This authority should be 
coupled with legislative safeguards to prevent the return of these stocks 

51986— 60— —6 2 p 



(J a Public Papers of the Presidents 

to domestic or foreign markets so as to cause disturbance in normal trade. 
Perishable stocks should of course be rotated. Stocks of wheat, cotton, 
vegetable oils and possibly some dairy products should be set aside after 
this program takes effect. 

The special circumstances relating to the crop and the date of initiat- 
ing the proposed new program should govern the time for establishing 
each such commodity reserve. This reserve program will be effective 
only if it is carefully integrated with the new program as a whole. The 
insulation of our excess reserves of food and fiber is an essential first step 
in launching this new program. 

EXPANSION OF FARM MARKETS ABROAD 

One of our largest potential outlets for present surpluses is in friendly 
countries. Much impetus can be given to the use of a substantial volume 
of these commodities by substituting to the maximum extent food and 
fiber surpluses in foreign economic assistance and disaster relief. I shall 
request a continuation of the authority to use agricultural surpluses for 
this purpose. 

It is not enough, however, to rely solely on these measures to move 
surpluses into consumption. No farm program should overlook con- 
tinued economic growth and expansion. By revolutionary increases in 
farm productivity during and since World War II, American farmers 
have prepared our nation to supply an ever greater proportion of the 
food needs of the world. Developing commercial markets for this ex- 
panded production is part of the larger problem of organizing a freer 
system of trade and payments throughout the free world. Because our 
farmers depend to a considerable degree on foreign markets their interests 
will be particularly served by strengthening of the work of the Department 
of Agriculture in developing market outlets both at home and abroad. 
In my Budget Message I shall recommend that sufficient funds be appro- 
priated for this purpose. 

Meanwhile, a series of trade missions, working in cooperation with 
our representation overseas, will be sent from the United States, one to 
Europe, one to Asia, one to South America, to explore the immediate 
possibilities of expanding international trade in food and fiber. More- 
over, the Secretary of Agriculture, in cooperation with the Secretary of 
State, is organizing discussions for the exchange of views with foreign 

30 



Dwight D. Eisenhower, ig$4 <fl 4 

ministers of agriculture on subjects affecting the use of agricultural sur- 
pluses and stockpiles. 

USE OF DIVERTED ACRES 

In addition to the removal of surpluses and the expansion of markets, 
special measures must be taken to deal with the use of acreages diverted 
from crops under allotment. To avoid these difficulties, the number of 
diverted acres must be reduced to a minimum. The proposed program 
accomplishes this by increasing the utilization of commodities, thereby 
reducing the need for acreage restrictions. 

When land must be diverted from production, it is essential that its 
use be related to the basic objectives of soil conservation — to protect 
and to improve that land. Wherever acreage adjustments are especially 
difficult, Agricultural Conservation Program funds will be used to help 
farmers make these adjustments in a manner that will advance soil con- 
servation and long-term efficiency. 

SMALL FARMS 

The chief beneficiaries of our price support policies have been the 
2,000,000 larger, highly mechanized farming units which produce about 
85% of our agricultural output. The individual production of the re- 
maining farms, numbering about 3,500,000, is so small that the farmer 
derives little benefit from price supports. During 1954 the Secretary 
of Agriculture, in cooperation with the National Agricultural Advisory 
Commission, will give further special attention to the problems peculiar 
to small farmers. 

CONCLUSION 

The agricultural program proposed in this section, and in Part II which 
follows, will open new market outlets both at home and abroad, not only 
for current supplies but for future production. It will provide a firm 
floor on which our farmers can rely while making long-term plans for 
efficient production and marketing. Year in and year out, it will provide 
the best prospects for the stability and growth of farm income. 

It will help the farmer attain full parity in the market. It will avoid 
creating burdensome surpluses. It will curtail the regimentation of pro- 
duction planning, lessen the problem of diverted acreage, and yield farm- 
It will bring farm production into closer balance with consumer needs, 
ers greater freedom of choice and action. 

3 1 



<I 4 Public Papers of the Presidents 

It will promote agricultural interests, along with the public interest gen- 
erally. It will avoid any sharp year to year change in prices and incomes. 

The program will again stimulate and encourage good farm manage- 
ment. It will prevent arbitrary government control and afford the great- 
est freedom to the individual farmer. It will provide added incentive 
to make wise use of all our agricultural resources, and promises the 
Nation's agriculture a more stable and reliable financial return than any 
alternative plan. 

I urge its early approval by the Congress. 

Part II 
In this part of the Special Message the principles developed in Part I 
are applied to specific commodities and commodity groups. 

WHEAT 

Wheat is a prime example of the results that ensue from a support pro- 
gram which fails to adjust to the level of demand. As of December 16, 
more than $2,000,000,000 of Commodity Credit Corporation funds were 
invested in wheat. 

The export market, historically vital to our wheat farmers, was itself 
partly responsible for the expanded production of American wheat dur- 
ing the war and postwar years. To meet the food needs of devastated 
countries, our farmers continued their high level of production after the 
war and thus rendered a great service to humanity and to the cause of 
freedom throughout the world. These expanded outlets have since 
greatly diminished. Yet the support price has remained at the level 
associated with wartime needs. The result is that production has con- 
tinued at wartime levels and, annually, more and more of this production 
has become surplus. 

In foreign markets, the high rigid support program of the United 
States has become an umbrella for competitors. This has created an 
artificial competitive situation which has cost the American farmer a 
substantial part of his world wheat market. During the past two years 
our exports of wheat outside the International Wheat Agreement have 
fallen from 220 million bushels to 64 million, while Canada's free market 
sales have risen from 105 to 161 million bushels. Thus our price policy 
shrinks the very market that could otherwise help absorb our excess 
stocks of wheat. 

32 



Dwight D. Eisenhower, 1954 <| 4 

Continuance of present price support levels for wheat would confront 
us with two undesirable alternatives : 

( 1 ) Curtail production to the amount needed for domestic use and 
very limited exports. This would require a reduction in wheat acreage 
of about 40 percent — from the 79 million acres planted in 1953 to be- 
tween 45 and 50 million acres. 

(2 ) Subsidize the consumption of wheat by increasingly severe burdens 
upon the taxpayer. 

The foregoing alternatives make it increasingly clear that the Nation 
must depart from the high rigid support level for wheat. 
It is, therefore, recommended that: 

( 1 ) A substantial part of the present excessive wheat carry-over be 
set aside as an emergency reserve and removed from the market. 

(2 ) After the 1954 crop, the level of price support for wheat be related 
to supply. Because of the substantial set-aside, computations of the sup- 
port level under the Agricultural Act of 1949 would insure that changes 
in support levels would be gradual. The Secretary of Agriculture will 
use his authority under the Agricultural Act of 1949 to insure that year- 
to-year variations in price support levels will be limited. 

(3) Beginning January 1, 1956, a change be made at the rate of five 
percent a year from old to modernized parity ; 

(4) Acreage allotments and marketing quotas be continued, with the 
anticipation, however, that adjusted support levels will increase the 
incentive to employ some of the present wheat land for other purposes. 

RICE 

Price supports for rice at 90 percent of parity have had no recent 
application. Market prices have been at or above support levels; re- 
straints on production have not been needed; stocks have not accumu- 
lated. Nevertheless, present price supports for rice can inhibit an 
adjustment, if one should be needed, in the same manner that they pre- 
vented the adjustment for wheat, when it was needed. 

It is therefore recommended that mandatory price supports at 90 
percent of parity for rice be allowed to expire after the 1954 crop. 

CORN 

Corn is a dominant factor in the feed-grain — livestock economy. This 
economy is based on an interdependent process involving the production 

33 



<|[ 4 Public Papers of the Presidents 

of feed, its conversion into livestock products, and its movement into con- 
sumption as meat, dairy products and eggs. To hold this economy in 
balance, prices are a critical factor, encouraging and discouraging live- 
stock production by turns, rationing feed when it is scarce and moving 
it into use when it is plentiful. For the efficient use of corn, some price 
freedom is indispensable. 

A program of high rigid price supports for feed grains involves the 
danger of curtailing our livestock industries and limiting the quantity 
of their products to consumers. We have made great strides in improving 
the efficiency of corn production and in passing some of those gains on 
to consumers in the form of reasonably priced livestock products. Our 
corn support program should be designed to encourage those trends. 

Corn is used in the same manner as pasture and hay on farms where 
grown. Seldom does more than 25 percent of our corn crop move 
through commercial channels, and the bulk of this is eventually used 
as feed by other farmers. Farmers, therefore, are the principal users 
of corn. It follows that a high support price for farmers who produce 
corn for sale aggravates the cost-price squeeze on other farmers who 
normally buy corn and competing feeds to produce livestock products. 

To guide the corn price support program, the adjustable price and 
income-balancing features of the Agricultural Act of 1949 on the whole 
are well suited. The level of support specified is designed to move corn 
into use. Livestock producers are assured of a steady supply of feed at 
reasonable prices. 

The old parity formula holds the support price for corn too high in 
relation to livestock prices. Use of modernized parity, scheduled by law 
to become effective on January 1, 1956, will help to balance these vital 
price relationships. 

It is, therefore, recommended that: 

( 1 ) Modernized parity for corn become effective on January 1, 1956, 
with modification limiting the rate of the transition to 5 percent in any 
single year; 

(2) Except as provided in (3) and (4) the provisions of the Agri- 
cultural Act of 1949 become effective for the corn crop of 1955 and 
subsequent crops; 

(3) The Act of 1949 be amended to provide a change, within the 
range of 75 to 90 percent of parity, of one percentage point in the support 
price for corn for each one percentage point of change in supply, thereby 

34 



Dwight D. Eisenhower, ig$4 <][ 4 

giving greater flexibility to corn support prices and tending to prevent 
the building up of excessive holdings by government; 

(4) Legislation be enacted to raise the normal carryover allowance 
for corn from 10 percent to 15 percent of domestic use plus exports, to 
become effective for 1955 and subsequent crops. This would help to 
assure more stable feed supplies and reduce the impact of current carry- 
over stocks on future production controls and support levels; 

(5) Upon adoption of the foregoing recommendation, the system of 
marketing quotas be abolished. 

FEED GRAINS OTHER THAN CORN 

The Agricultural Act of 1949 authorizes price support for such non- 
basic crops as oats, barley, and grain sorghums at not to exceed 90 per- 
cent of the parity price. The amounts, terms and conditions of price 
support operations and the extent to which these operations are carried 
out are determined or approved by the Secretary of Agriculture upon 
consideration of various factors specified in the law. 

Inasmuch as this program has worked satisfactorily, it is recommended 
that these provisions be continued. 

MEAT ANIMALS 

The fact that mandatory price supports are ill adapted to meat animals 
has been recognized by Secretaries of Agriculture for years. The present 
law provides tools well adapted to deal with the problems peculiar to the 
livestock industry. 

It is recommended, therefore, that the existing conditions with respect 
to meat animals be continued. 

DAIRY PRODUCTS 

The Agricultural Act of 1949 requires price support for dairy products 
at such levels between 75 and 90 percent of parity as are necessary to 
assure an adequate supply. Sufficient discretionary authority is provided 
to operate a satisfactory program. 

It is recommended that these provisions of law be continued. 

POULTRY AND EGGS 

Price supports have not been generally desired by the poultry industry. 
Temporarily, and in special circumstances, price supports can, however, 
be helpful. 

35 



<][ 4 Public Papers of the Presidents 

It is recommended, therefore, that : 

( i ) Provisions of the 1949 Act be continued for poultry and eggs, with 
discretionary authority for the Secretary of Agriculture to support prices 
at not to exceed 90 percent of parity; 

( 2 ) Discretionary authority be continued to purchase poultry products 
for use in the school lunch program, in non-profit institutions, and for 
certain other purposes. 

COTTON 

Cotton, like wheat, is an export crop whose price is currently supported 
above the world level. Carryover stocks in the United States have been 
accumulating rapidly in the past two years. These stocks, probably close 
to 9,600,000 bales by next August, will approximate a full year's domestic 
requirements. 

Our high rigid price support program stimulates competition of foreign 
producers and reduces exports. During the twenties and early thirties 
our net exports of cotton generally exceeded domestic consumption. Cur- 
rent exports amount to hardly a third of our larger domestic requirements. 

Our problem is to develop a program which will help growers adjust 
gradually to changing circumstances, including foreign and domestic 
competition of rising intensity. 

The Agricultural Act of 1949 provides price supports for cotton at a 
level between 75 and 90 percent of parity, dependent on the supply. 
Thus changes in supply and price would tend to offset one another, giving 
a relatively stable income. This plan will allow limited price variation, 
thus affording growers reasonable market stability and yet offering added 
inducement for heavier use of cotton in years of abundant supplies. 

Separate legislation has made the adjustable pricing provisions of the 
1949 Act ineffective for cotton. The Secretary of Agriculture is now 
required by law to set such marketing quotas and allotments that the 
required price support level can seldom if ever fall below 90 percent of 
parity. Instead of relying in part on the schedule of price floors intended 
in the Act of 1949, the law requires reliance almost entirely on production 
controls. 

It is recommended, therefore, that : 

1. A substantial part of the present large carryover of cotton now in 
prospect be set aside as an emergency reserve and removed from the 
market. 

36 



Dwight D. Eisenhower, ig$4 ^ 4 

2. After the 1954 crop, the level of price support for cotton be related 
to supply. Because of the substantial set-aside, computations of the 
support levels, under the Agricultural Act of 1949, would insure that 
changes in support levels would be gradual. The Secretary of Agricul- 
ture will use his authority under the Agricultural Act of 1949 to insure 
that year-to-year variations in price support levels will be limited. 

3. Modernized parity becomes effective for cotton as scheduled on 
January 1, 1956. 

4. The Congress repeal the present provisions whereby the maximum 
use of production restrictions before there can be any reduction of the 
price support level is required. 

TOBACCO 

Tobacco farmers have demonstrated their ability to hold production 
in line with demand at the supported price without loss to the govern- 
ment. The relatively small acreage of tobacco and the limited areas to 
which it is adapted have made production control easier than for other 
crops. 

The level of support to cooperators is 90 percent of the parity price 
in any year in which marketing quotas are in effect. 

It is recommended that the tobacco program be continued in its 
present form. 

PEANUTS 

The law requires that mandatory 90 percent supports for peanuts 
continue through 1954 and that old parity remain in effect until the 
end of 1955. 

This program, which has experienced some difficulties in adjusting 
supplies to demand at the supported price, can operate successfully with 
certain changes. 

It is recommended that: 

( 1 ) The Agricultural Act of 1949 become effective for peanuts on Jan- 
uary 1, 1955. 

(2 ) The shift to modernized parity for peanuts begins as now provided 
by law on January 1, 1956. 

(3) A transitional provision be provided to limit the change from the 
old to modernized parity to not more than 5 percent per year. 



37 



<J 4 Public Papers of the Presidents 

TUNG NUTS AND HONEY 

Tung nuts and honey should be in the same category with other 
products for which price supports are permissive rather than required. 
It is recommended, therefore, that the mandatory price supports for 
these commodities be discontinued. 

OIL SEEDS 

Price support is authorized for soybeans, cottonseed and flax at not 
to exceed 90 percent of the parity price. It is recommended that the 
provisions of the Agricultural Act of 1949 be continued for these 
commodities. 

FRUITS AND VEGETABLES 

Existing law authorizes the use of 30 percent of general tariff revenues 
to encourage the exportation and domestic consumption of agriculture 
commodities. In the event of market distress these funds may be used 
for limited purchases of market surpluses of such perishable commodities 
as fruits and vegetables. No purchases may be undertaken unless outlets 
are available. 

It is recommended that : 

(1) Present provisions for the use of funds from tariff revenues be 
continued. 

(2) Authorization for the use of marketing agreements be continued 
and liberalized to 

(a) provide for inclusion of additional commodities to which market- 
ing agreements are adapted ; 

(b) enlarge and clarify the authorization for agencies established under 
marketing orders to engage in or finance, within reasonable limits, re- 
search work from funds collected pursuant to the marketing order; 

(c) provide for the continuous operation of marketing agreements, 
despite short-term price variations, where necessary to assure orderly 
distribution throughout the marketing season ; and 

(d) enlarge and clarify the authorization for the use of marketing 
orders to promote marketing efficiency, including the regulation of con- 
tainers and types of pack for fresh fruits and vegetables. 

POTATOES 

It is recommended that legislation be enacted to allow assistance to 
potato growers in the same manner as is available for producers of other 
vegetables and of fruits. 

38 



Dwight D. Eisenhower, ig54 *5 4 

SUGAR 

The Sugar Program, extended in 1951, is operating in a generally 
satisfactory manner. It is recommended that this program be continued 
in its present form. 

WOOL 

Price support for wool above the market level has resulted in heavy 
accumulations of wool — now nearly 100 million pounds — by the Com- 
modity Credit Corporation and the substitution of imported for domestic 
wool in our home consumption. Two-thirds of the wool used in the 
United States is imported; yet our own wool piles up in storage. 

A program is needed which will assure equitable returns to growers 
and encourage efficient production and marketing. It should require a 
minimum of governmental interference with both producers and proc- 
essors, entail a minimum of cost to taxpayers and consumers; and align 
itself compatibly with over-all farm and international trade policies. 

It is recommended that: 

( 1 ) Prices of domestically produced wool be permitted to seek their 
level in the market, competing with other fibers and with imported wool, 
thus resulting in only one price for wool — the market price; 

( 2 ) Direct payments be made to domestic producers sufficient, when 
added to the average market price for the season, to raise the average 
return per pound to 90 percent of parity; 

(3) Each producer receive the same support payment per pound of 
wool, rather than a variable rate depending upon the market price he 
had obtained. If each grower is allowed his rewards from the market, 
efficient production and marketing will be encouraged. This has the 
further advantage of avoiding the need for governmental loans, pur- 
chases, storage, or other regulation or interference with the market. 
Further, it imposes no need for periodic action to control imports in 
order to protect the domestic price support program. 

(4) Funds to meet wool payments be taken from general revenues 
within the amount of unobligated tariff receipts from wool. 

(5) Similar methods of support be adopted for pulled wool and for 
mohair, with proper regard for the relationships of their prices to those 
of similar commodities. 

Dwight D. Eisenhower 



39 



<][ 5 Public Papers of the Presidents 

5 ^ Special Message to the Congress on 
Labor-Management Relations. January n, 1954 

To the Congress of the United States: 

I submit herewith for the consideration of the Congress a number of 
legislative recommendations affecting labor-management relations. 
These recommendations are in the interests both of working men and 
women, and our business and industrial community. In a broader sense, 
they are in the interests of all our people, whose prosperity is in so great 
a degree dependent on the existence of genuine mutual respect and good 
feeling between employers and employees. 

This field of legislation has had a long, contentious history. It has 
taken time for objective principles to emerge which can command mutual 
acceptance of the fundamentals which govern the complex labor-man- 
agement relationship. Although the process is not and perhaps never will 
be complete, we have now achieved a measure of practical experience 
and emotional maturity in this field which, I do not doubt, is responsible 
for the relatively peaceful character of recent industrial relations. No 
drastic legislative innovations in this field are therefore desirable or re- 
quired at this time. 

Federal labor-management legislation at best can provide only the 
framework in which free collective bargaining may be conducted. It 
should impose neither arbitrary restrictions nor heavy-handedness upon 
a relationship in which good will and sympathetic understanding should 
be the predominant characteristics. 

The National Labor Relations Act — known as the Wagner Act and 
adopted in 1935 by bipartisan majorities — came into being because 
American working men and women needed the protection of law in 
order to guarantee them the free exercise of their right to organize into 
unions and to bargain collectively through representatives of their own 
choosing. As unions became strong, a need arose to protect the legitimate 
rights of employees and employers and to protect the general public from 
the consequences of unresolved labor disputes that created emergencies 
endangering the health or safety of the nation. To meet this need the 
Labor-Management Relations Act, 1947, commonly known as the Taft- 
Hartley Act, was adopted by bipartisan majorities. 

40 



Dwight D. Eisenhower, ig$4 <| 5 

In enacting labor-management legislation, the Congress has always 
built upon the legislation which preceded it. We have never turned 
backward. The Labor-Management Relations Act, 1947, was no ex- 
ception. It built upon the National Labor Relations Act, and not only 
reaffirmed, but reinforced the right of working men and women to 
organize into unions and to bargain collectively with their employer. 
The protection of this right is firmly fixed in our law and should remain 
a permanent policy of our Government. 

The Labor-Management Relations Act, 1 947, is sound legislation. Ex- 
perience gained in the operation of the Act, however, indicates that 
changes can be made to reinforce its basic objectives. 

In the area of employer-employee relations the injunction has always 
been a controversial process. It is apparent, however, that where irrep- 
arable damage threatens, the restraining effect of an injunction is re- 
quired in the interest of simple justice. Nevertheless, where a collective 
bargaining relationship exists, the issuance of an injunction often has the 
effect of making settlement of the dispute which led to the injunction more 
difficult. 

Therefore, I recommend that whenever an injunction is issued under 
the National Labor Relations Act where a collective bargaining relation- 
ship exists between the parties, the Federal Mediation and Conciliation 
Service shall empanel a special local board to meet with the parties in an 
effort to seek a settlement of their dispute. I further recommend that in 
secondary boycott cases, the application for an injunction be discretionary. 

The prohibitions in the Act against secondary boycotts are designed to 
protect innocent third parties from being injured in labor disputes that 
are not their concern. The true secondary boycott is indefensible and 
must not be permitted. The Act must not, however, prohibit legitimate 
concerted activities against other than innocent parties. I recommend 
that the Act be clarified by making it explicit that concerted action against 
( 1 ) an employer who is performing "farmed-out" work for the account 
of another employer whose employees are on strike or (2) an employer 
on a construction project who, together with other employers, is engaged 
in work on the site of the project, will not be treated as a secondary 
boycott. 

As the Act is now written, employees who are engaged in an economic 
strike are prohibited from voting in representation elections. In order to 

4i 



ij 5 Public Papers of the Presidents 

make it impossible for an employer to use this provision to destroy a union 
of his employees, I recommend that, in the event of an economic strike, 
the National Labor Relations Board be prohibited from considering a 
petition on the part of the employer which challenges the representation 
rights of the striking union. I further recommend that for a period of 
four months after the commencement of the strike, the Board be pro- 
hibited from considering a petition on the part of any other union which 
claims to represent the employees. The prohibition against consider- 
ing a petition by the employer should continue as long as the strike 
continues, provided, however, that a reasonable limit of time, which I 
suggest be one year, be stipulated. 

The Act has been interpreted to mean that even though a collective 
bargaining contract is in force, either party may insist that the contract 
be reopened for the purpose of bargaining about matters that were not 
the subject of negotiations when the contract was made. Thus stabili- 
zation of the relationship between the parties for the period of the con- 
tract can be completely frustrated. I recommend that the law be 
amended so as to protect both parties to a valid collective bargaining 
agreement from being required to negotiate during its term unless the 
contract so authorizes or both parties mutually consent. 

The National Emergency provisions of the Act are essential to the 
protection of the National health and safety. As the Act is now 
written, the board of inquiry established to inquire into the facts of the 
dispute causing the emergency must report the facts to the President 
without recommendations. In order that the President may have the 
authority to require the board's recommendations, I recommend that 
after he has received and made available to the public the last report of 
the board of inquiry (if the dispute has not then been settled), he be 
empowered to reconvene the board and direct it to make recommenda- 
tions to him for settlement of the dispute. Although the recommenda- 
tions of the board would not be binding upon the parties, yet there is 
real value in obtaining the recommendations of informed and impartial 
men for the settlement of a dispute which imperils the national health 
and safety. 

Employees engaged in the construction, amusement and maritime 
industries have unique problems because their employment is usually 
casual, temporary or intermittent. I recommend that in these industries 



42 



Dwight D. Eisenhower, IQ54 fj 5 

the employer be permitted to enter into a pre-hire contract with a union 
under which the union will be treated initially as the employees' repre- 
sentative for collective bargaining. I also recommend that in these 
industries the employer and the union be permitted to make a union- 
shop contract under which an employee, within seven days after the 
beginning of his employment, shall become a member of the union. 

Under the Act as presently written, both unions and employers are 
made responsible for the actions of their agents. In order to make it 
clear that a union cannot be held responsible for an act of an individual 
member solely because of his membership in the union, I recommend 
that the Act be amended to make the traditional common law rules of 
agency applicable. 

The Act presently provides that the facilities of the National Labor 
Relations Board are available only to those unions whose officials execute 
affidavits disclaiming membership in Communist organizations. The 
Communist disclaimer provisions are not presently applicable to em- 
ployers. I recommend that they be made applicable. Specific proposals 
for legislation dealing with Communist infiltration generally are now 
under study. If such legislation is enacted, making the Communist dis- 
claimer provisions of the Act unnecessary, I then will recommend that 
they be entirely eliminated. 

The right of free speech is fundamental. Congress should make clear 
that the right of free speech, as now defined in the Act, applies equally 
to labor and management in every aspect of their relationship. 

The Act presently prohibits an employer from making payment to a 
union to assist in the financing of union welfare funds unless the fund 
meets certain standards. These standards are not adequate to protect 
and conserve these funds that are held in trust for the welfare of individual 
union members. It is my recommendation that Congress initiate a thor- 
ough study of welfare and pension funds covered by collective bargaining 
agreements, with a view of enacting such legislation as will protect and 
conserve these funds for the millions of working men and women who 
are the beneficiaries. 

The Act should make clear that the several states and territories, when 
confronted with emergencies endangering the health or safety of their 
citizens, are not, through any conflict with the Federal law, actual or 
implied, deprived of the right to deal with such emergencies. The need 

43 



<][ 5 Public Papers of the Presidents 

for clarification of jurisdiction between the Federal and the State and 
Territorial governments in the labor-management field has lately been 
emphasized by the broad implications of the most recent decision of the 
Supreme Court dealing with this subject. The Department and agency 
heads concerned are, at my request, presently examining the various areas 
in which conflicts of jurisdiction occur. When such examination is com- 
pleted, I shall make my recommendations to the Congress for corrective 
legislation. 

In the employer-employee relationship there is nothing which so vitally 
affects the individual employee as the loss of his pay when he is called 
on strike. In such an important decision he should have an opportunity 
to express his free choice by secret ballot held under Government auspices. 

There are two other changes in the law that I recommend. The 
authorization which an individual employee gives to his employer for the 
check-off of the employee's union dues should be made valid until the 
termination of the collective bargaining contract which provides for such 
check-off, unless the employee sooner revokes such authorization. The 
provisions of the Act which require reports from unions concerning their 
organization and finances should be simplified so as to eliminate duplica- 
tion in the information required by such reports. 



I hope that the foregoing changes will be enacted by Congress promptly, 
for they will more firmly establish the basic principles of the law. The 
appropriate Committees of the Congress will, I am certain, wish to keep 
the law under continuous study and in the light of experience under it 
propose further amendments to implement its objectives and constantly 
improve its administration. 

Government should continue to search diligently for sound measures 
to improve the lot of the working man and woman, mindful that con- 
ditions and standards of employment change as the products, habits and 
needs of men and women change. It will be continually a challenge to 
Government to sense the aspirations of the working people of our country, 
that all may have the opportunity to fairly share in the results of the 
productive genius of our time, from which comes the material blessings 
of the present and a greater promise for the future. 

Dwight D. Eisenhower 



44 



Dwight D. Eisenhower, ig$4 f§ 6 

6 •! Special Message to the Senate Transmitting 
the Mutual Defense Treaty Between the United 
States and the Republic of Korea. 
January n, 1954 

To the United States Senate: 

With a view to receiving the advice and consent of the Senate to 
ratification, I transmit herewith the Mutual Defense Treaty between 
the United States of America and the Republic of Korea signed at 
Washington on October i, 1953. 

I transmit also for the information of the Senate a document con- 
taining the joint statement by President Syngman Rhee of the Republic 
of Korea and by the Secretary of State on August 8, 1953, on the occa- 
sion of the initialing of the Mutual Defense Treaty in Seoul, and the 
text of an address by the Secretary of State on the occasion of the signing 
of the Mutual Defense Treaty on October 1, 1953. 

There is further transmitted for the information of the Senate the 
report made to me by the Secretary of State regarding the aforesaid 
treaty. 

The Mutual Defense Treaty signed by the United States and the 
Republic of Korea is designed to deter aggression by giving evidence of 
our common determination to meet the common danger. It thus re- 
affirms our belief that the security of an individual nation in the free 
world depends upon the security of its partners, and constitutes another 
link in the collective security of the free nations of the Pacific. 

I recommend that the Senate give early favorable consideration to 
the treaty submitted herewith, and advise and consent to its ratification. 

Dwight D. Eisenhower 

note: The treaty and related papers are the Senate on January q6 and after rati- 
published in Senate Executive A, 83d fixation entered into force November 17, 
Congress. The treaty was approved by 1954 (5UST2368). 



45 



EewTston Public Library 
Lewiston, Maine 



<J J Public Papers of the Presidents 

7 ^ Letter to Julius Ochs Adler, Chairman, 
National Security Training Commission, 
Concerning the Reserve Establishment. 
January 12, 1954 

Dear General Adler: 

It meant a great deal to me to have the opportunity to discuss with 
you plans for arriving at decisions relative to the size and composition 
of our reserve forces. It will be of immeasurable assistance to the Office 
of Defense Mobilization, in its preparation of plans for presentation to 
the National Security Council for developing and maintaining an ade- 
quate reserve establishment, to have the benefit of the continued counsel 
of the National Security Training Commission. 

Because of the wealth of information and experience with this prob- 
lem which your Commission has gained in its long studies and investi- 
gations I suggest that you arrange to work closely with the Director of 
Defense Mobilization, Arthur S. Flemming. 

The expression of deep appreciation I feel for the long hours of effort 
that you and your associates have contributed in the preparation of the 
excellent report submitted to me has been too long delayed. Your report 
will be of great value to all who are concerned with meeting this great 
national military need. 

May I as well convey my personal regards to you and to each member 
of your Commission. 

Sincerely, 

Dwight D. Eisenhower 

note: The report of the National Secu- the President on a Reserve Forces Train- 
rity Training Commission is entitled ing Program" (159 pp., Government 
"20th Century Minutemen, a Report to Printing Office, 1954). 



46 



Dwight D. Eisenhower, 1954 ^ 8 

8 ^ Citations Accompanying Medals of Honor 
Presented to William R. Charette, Edward R. 
Schowalter, Jr., and Ernest E. West. 
January 12, 1954 

THE PRESIDENT of the United States in the name of The Congress 
takes pleasure in presenting the Medal of Honor to 

WILLIAM R. CHARETTE 

HOSPITAL GORPSMAN THIRD CLASS 

UNITED STATES NAVY 

for service as set forth in the following 

Citation : 

For conspicuous gallantry and intrepidity at the risk of his life above 
and beyond the call of duty as a Medical corpsman, serving with a 
Marine Rifle Company, in action against enemy aggressor forces in 
Korea during the early morning hours of 27 March 1953. Participating 
in a fierce encounter with a cleverly concealed and well-entrenched enemy 
force occupying positions on a vital and bitterly contested outpost far 
in advance of the main line of resistance, CHARETTE repeatedly and 
unhesitatingly moved about through a murderous barrage of hostile 
small-arms and mortar fire to render assistance to his wounded com- 
rades. When an enemy grenade landed within a few feet of a Marine 
he was attending, he immediately threw himself upon the stricken man 
and absorbed the entire concussion of the deadly missile with his own 
body. Although sustaining painful facial wounds, and undergoing shock 
from the intensity of the blast which ripped the helmet and medical aid 
kit from his person, CHARETTE resourcefully improvised emergency 
bandages by tearing off part of his clothing, and gallantly continued to 
administer medical aid to the wounded in his own unit and to those in 
adjacent platoon areas as well. Observing a seriously wounded comrade 
whose armored vest had been torn from his body by the blast from an 
exploding shell, he selflessly removed his own battle vest and placed it 
upon the helpless man although fully aware of the added jeopardy to 
himself. Moving to the side of another casualty who was suffering ex- 

47 



<][ 8 Public Papers of the Presidents 

cruciating pain from a serious leg wound, CHARETTE stood upright 
in the trench line and exposed himself to a deadly hail of enemy fire in 
order to lend more effective aid to the victim and to alleviate his anguish 
while being removed to a position of safety. By his indomitable courage 
and inspiring efforts in behalf of his wounded comrades, CHARETTE 
was directly responsible for saving many lives. His great personal valor 
reflects the highest credit upon himself and enhances the finest traditions 
of the United States Naval Service. 

Dwight D. Eisenhower 



THE PRESIDENT of the United States of America, authorized by Act 
of Congress March 3, 1863 has awarded in the name of The Congress 
the Medal of Honor to 

FIRST LIEUTENANT EDWARD R. SCHOWALTER, JR., 
UNITED STATES ARMY 

for conspicuous gallantry and intrepidity at the risk of his life above and 
beyond the call of duty in action with the enemy : 

First Lieutenant Edward R. Schowalter, Jr., 064 446, Infantry, United 
States Army, Commanding, Company A, 31st Infantry Regiment, 7th 
Infantry Division, distinguished himself by conspicuous gallantry and 
indomitable courage above and beyond the call of duty in action against 
the enemy near Kumhwa, Korea, on 14 October 1952. Committed to 
attack and occupy a key approach to the primary objective, the First 
Platoon of his company came under heavy vicious small arms, grenade 
and mortar fire within fifty yards of the enemy-held strongpoint, halting 
the advance and inflicting several casualties. The Second Platoon moved 
up in support at this juncture, and although wounded, Lieutenant 
Schowalter continued to spearhead the assault. Nearing the objective 
he was severely wounded by a grenade fragment but, refusing medical aid, 
he led his men into the trenches and began routing the enemy from the 
bunkers with grenades. Suddenly from a burst of fire from a hidden cave 
off the trench he was again wounded. Although suffering from his 
wounds, he refused to relinquish command and continued issuing orders 
and encouraging his men until the commanding ground was secured and 
then he was evacuated. Lieutenant Schowalter's unflinching courage, 

48 



Dwight D. Eisenhower, JQ54 <J 8 

extraordinary heroism and inspirational leadership reflect the highest 
credit upon himself and are in keeping with the highest traditions of the 
military service. 

Dwight D. Eisenhower 



THE PRESIDENT of the United States of America, authorized by Act 
of Congress March 3, 1863 has awarded in the name of The Congress 
the Medal of Honor to 

PRIVATE FIRST GLASS ERNEST E. WEST, 
UNITED STATES ARMY 

for conspicuous gallantry and intrepidity at the risk of his life above and 
beyond the call of duty in action with the enemy : 

Private First Class Ernest E. West, US 52 151 286, Infantry, United 
States Army, a member of Company L, 14th Infantry Regiment, 25th 
Infantry Division, distinguished himself by conspicuous gallantry above 
and beyond the call of duty in action against the enemy near Sataeri, 
Korea, on 12 October 1952. He voluntarily accompanied a contingent 
to locate and destroy a reported enemy outpost. Nearing the objective, 
the patrol was ambushed and suffered numerous casualties. Observing 
his wounded leader lying in an exposed position, he ordered the troops 
to withdraw, then braved intense fire to reach and assist him. While 
attempting evacuation, he was attacked by three hostile soldiers employ- 
ing grenades and small arms fire. Quickly shifting his body to shelter 
the officer, he killed the assailants with his rifle, then carried the helpless 
man to safety. He was critically wounded and lost an eye in this action, 
but courageously returned through withering fire and bursting shells to 
assist the wounded and, while evacuating two comrades, closed with and 
killed three more of the foe. Private West's indomitable spirit, consum- 
mate valor and intrepid actions inspired all who observed him, reflecting 
highest credit upon himself and upholding the honored traditions of the 
military service. 

Dwight D. Eisenhower 

note: The medals were presented by the of the citations was read by Comdr. 
President at the White House. The text Edward L. Beach, Naval Aide to the 

President. 



49 



<J g Public Papers of the Presidents 

9 ^ The President's News Conference of 
January 13, 1954. 

the president. Ladies and gentlemen, all this picture-taking session 
reminds me that this is our first meeting of the year, and so it gives me 
a chance to say to those that I have not seen before, "Happy New Year." 
I hope that each of you gets that salary raise that has been so long 
overdue. 

Q. Merriman Smith, United Press : May we quote that, sir? 

the president. If anyone thinks that will have any influence with 
your publisher, you are at liberty to quote it. 

I think, ladies and gentlemen, I have no particular statement of my 
own. It seems to me I have been making a lot of them lately, and so 
with your permission we will make this easier by going to questions. 

Q. Mr. Smith: Mr. President, after your labor message to Congress, 
there was some confusion as to precisely what you meant in your recom- 
mendation about Government auspices controlling strike votes. Did you 
mean, sir, that a secret strike ballot should be taken prior to a strike or 
during a strike? 

the president. Actually, of course, what I was trying to establish 
was a principle. Nearly all of the suggestions I made for the amendment 
of the Taft-Hartley were in that tenor, that here is something that should 
be done. I carefully have avoided the exact details of how these things 
should be done, because we well know that is a province of the Congress 
and of its committees in their investigations. 

My function, as I see it, is to lay down for their consideration the things 
that I believe to be principle, and that is exactly what I tried to do there. 

So I would accept anything that looks the most practicable and feasible 
in the circumstances. 

Q. John Herling, Editors Syndicate: Mr. President, in view of the 
sharp disagreement as to the meaning and intention of your recommen- 
dation among Republican leadership, not to mention labor leadership 
as well, would you insist, sir, on having this proposal a part of "must" 
labor legislation? 

the president. Ladies and gentlemen, within reason, I think we 
know and can identify those features of bills or of a legislative program 
that could be classed as "must." They are the things that have to be 

50 



Dwight D. Eisenhower, ig$4 ^f 9 

done. Now, there are certain things which I believe are for the good 
of the country. I have arrived at those conclusions after long study with 
all my associates, with people over the country, and I am going to fight 
for them where I think they are important. 

I naturally cannot tell you in advance which I am going to consider 
the most important and the least important. I don't know how they will 
come up in Congress and how they will be handled. So I am not going 
to identify particular details as "must" and "not must" except as they 
apply to supply bills, legislative bills, security bills in their main outline, 
such things as that, or where laws expire and something has to be done. 
Those things must be handled, and they must be handled in a way that 
will allow the country to go ahead and function properly. 

I am not going, though, to try to take each feature of the things I have 
said and am going to say — I am going to send down lots more messages 
to Congress — and in each feature of them say that is "must" or that is 
"not must." I don't think that is my function at least at this moment. 

Q. David P. Sentner, Hearst Newspapers: Mr. President, could you 
say what percentage of your recommended proposals to Congress you 
would expect to be passed at this session? 

the president. I can't guess. Look : I want to make this very clear. 
I am not making recommendations to Congress just to pass the time 
away or to look good or for anything else. Everything I send to Congress 
I believe to be, and the mass of my associates believe to be, for the good 
of this country; therefore, I am going to work for their enactment. 
Make no mistake about that. That is exactly what I am here for and 
what I intend to do. 

But for me to try to say what percentage of these things is absolutely 
necessary to the existence of this country for another year or until the 
next session, that is going too far for me. 

Q. Nat S. Finney, Buffalo Evening News: Mr. President, I would like 
to ask a question about your current position on the Bricker amendment, 
and try to ask it so that it will not be confusing. Will you accept or 
agree to an amendment which would make it impossible to use the 
treaty-making power to impose conditions on the individual States which 
cannot be imposed by regular legislation? 

the president. I must say, you opened up a subject that really 
requires the space of a lecture to get at exactly what we mean. But I 
must call this to your attention. When you are talking about the rights 

5 1 



<][ g Public Papers of the Presidents 

of the individual States — and I suppose if you were going to class me as 
anything else, you would class me as a States' Righter — I would like each 
of you to ask yourself this question: why was the Constitution formed, 
and to replace the old Articles of Confederation? 

If you will look up the history of the time, you will find that each one 
of the States under the Articles of Confederation had a right to repudiate 
a treaty. Because of this fact, the Founding Fathers, who I still think 
were probably the wisest group of men that were ever brought together 
in this country, indeed possibly in the world, or such in this governmental 
field — that is what I am talking about — provided that a treaty properly 
ratified should take precedence over any State law, including that State's 
constitution. 

That is so that the people, the individual, the representative of the 
United States — and that means your President and your Secretary of 
State, or both acting together — meeting a like representative from other 
nations, can represent one government, and can speak with that much 
authority. They are not trying the impossible task of representing 48 
governments. 

Now, there has been a very great deal of concern developing for fear 
that the treaty-making power may be used to contravene our Constitution. 
I think some of you, at least, may recall that last July, when Senator 
Knowland introduced a substitute amendment for the Bricker amend- 
ment, I issued a statement. In that statement I said there were certain 
things to which I would gladly agree, a statement which said that any 
treaty or any other executive or any kind of international agreement that 
contravened any article of our Constitution should be null and void, and 
I would agree to that. 

Secondly, I would agree that the votes on these treaties, where they 
are passed by two-thirds vote in the Senate, should be by yeas and nays 
to record the purpose of that on the part of its advocates, and to record 
who was there and how many Senators actually approved. 

Also, I stated that the Senate could, whenever it chose, include in its 
approval that anything in that treaty affecting the internal affairs of the 
United States could become effective only by an act of Congress. 

And, ladies and gentlemen, let me point out one thing else. The power 
of Congress, by subsequent action, to nullify any article of a treaty has 
never been questioned. This fear, though, that our Constitution might 

52 



Dwight D. Eisenhower, 1954 ^ 9 

be damaged has led me to agree to all those amendments. But when you 
come down to this, that we have to go right back to the general system 
that prevailed before our Constitution was adopted, then I certainly shall 
never agree. 

Now, as all of you know, it takes a long time to get an amendment 
passed. This thing, with me, is completely objective. It is completely 
my concern and my belief of what is good for the future of the United 
States, not the present. It cannot affect these next 3 years, I am quite 
sure. 

Q. Milton Friedman, Jewish Telegraphic Agency : Mr. President, can 
you tell us whether you still favor revision of the McCarran- Walter Immi- 
gration Act, and whether there was anything significant in your omission 
of this item from your State of the Union Message? 

the president. No, there was no significance in its omission. As a 
matter of fact, there were many, many things omitted, and I think I 
stated that some of these things that were omitted would be the subject 
of later comment. It happens that this year, up until this time, the 
details of any studies made on the McCarran Act by the responsible 
departments have not been submitted to me. And therefore whether 
we are going to recommend immediate revision, I can't say for certain. 

Q. Daniel Schorr, CBS-Radio : Mr. President, is there anything new 
on the question of channeling defense contracts to chronic unemploy- 
ment areas? 

the president. Well, there is nothing new on it. There has been, I 
think, a certain misapprehension about it. You know, the proportion of 
holdback is normally small in any contract; and then the Secretary of 
Defense, or the Office of Defense Mobilization, I believe, can channel 
these contracts to other places only in the event that the lowest bid 
achieved under normal processes is equaled in that area. It is an attempt 
to help out in cases of unemployment with useful work rather than with 
work that wouldn't be so useful to the United States. But I believe that 
there has been an exaggerated idea that an entire contract would be 
shoved somewhere just because they had unemployment. There is no 
such intent. 

Q. Mr. Schorr : Will there be any change in that policy as a result of 
some recent criticism? 

the president. I am not one of those that uses the word "never" very 



51986—60- 



53 



CJf g Public Papers of the Presidents 

often. I thought when I approved the policy ,» it was a sound one. I have 
been proved wrong before in my life, so I am not going to say I can't be 
proved wrong. But I certainly think that the objective of that policy was 
good ; it was reasonable and certainly was applied only in a limited way. 
But I am certainly always going to look at it if I see a legitimate case. 

Q. John H. Kelso, Boston Post: In line with that same question, a 
group of New England Congressmen said yesterday that New England 
is now in a depression, not a recession, and they said that they still had 
hope, particularly a person from Lawrence, because you told them you 
would help them during the campaign. Have you any specific plans to 
help that area? 

the president. You mean, to help Lawrence? 

Q. Mr. Kelso : And New England, yes. 

the president. I must say this: I would repeat what I have said 
often before. There are special problems; there can be no special 
privileges, as I see it, applying to areas or to class or to anything else. Now, 
whatever is feasible and possible in the way of credit or work for them 
or helping small business, which is the big thing that we have talked 
about there, anything that is feasible within the power of this Government 
will be done to help all the United States, not merely to help any special 
section. But if one special section needs these things more than another, 
then it naturally gets more help, like in the drought problem. 

We go into the drought problem not merely because some farmers are 
suffering and cattle are dying, but because it is good for all the United 
States to get that thing straightened out and do the best we can with it. 
And that same approach will be made to any other section of the country. 

Q. John L. Cutter, United Press: Mr. President, in discussing the 
Bricker amendment application, and so forth, you talked about looking to 
the future, and specified that it cannot affect anything within the next 3 
years, I am sure. Does that indicate that you do not intend to remain in 
office after 3 years? 

the president. There is one thing that I am always advised by my 
political friends: that is one thing that I never should talk about; if I 
inadvertently mentioned it here because I was thinking in a specific term, 
I apologize. Maybe you had better delete the "3 years." 

Q. Anthony H. Leviero, New York Times: Mr. President, your pro- 
posal to deprive conspirators against the Government of citizenship has 



54 



Dwight D. Eisenhower, 1954 ^ 9 

aroused considerable interest. Is it your aim to redefine the line between 
disloyalty and good citizenship? Could you tell us that? 

the president. No, it wasn't that. Here is the point. As of now, 
there is a law that deprives a man of citizenship if he is convicted of an 
actual attempt to destroy this Government by force. I believe that if 
a man is convicted in the courts of deliberately conspiring to do that, he 
is just as guilty as the attempt. And therefore I am putting him in the 
same class as the man that attempts. 

The Department of Justice has worked up a little list of things, what 
it means to a man when he loses his citizenship ; and I am merely putting 
a conspirator in the same class as a man who actually attempts it. 

Q. Raymond P. Brandt, St. Louis Post-Dispatch: Mr. President, will 
not that require additional legislation? 

the president. Yes, I think it will. 

Q. Mr. Brandt: It will? 

the president. Now, don't let me — I think it will. 

Q. Mr. Brandt: Can we get the list from the Department of Justice? 

the president. I think so. 

Q. Paul R. Leach, Chicago Daily News: Mr. President, adding con- 
spiracy to the law of 1907, amended in 1940, I believe, is that all that 
is required? 

the president. I would think so. Now, you are asking me a question 
you had better ask General Brownell. I think I am correct — we talked 
this over at length; but after all, you know, that kind of point wouldn't 
make the exact impression on me that it probably should if I were a 
lawyer. So I think you had better ask him, but that is my belief. 

Q. Sarah McClendon, El Paso Times: Sir, on the Air Academy, 
the whole question of locating the Air Academy has been reopened, and 
all applicants have been asked to resubmit bids, after a Commission 
worked for years with the help of paid Government professional experts 
to find seven sites. Will you say what you think about reopening this? 

the president. I will say this: this is the first time I have heard of 
this. But I will say this also: here is a question in which, I think, I 
have exhibited admirable restraint. [Laughter] 

You will recall when I came back from Europe in 1945, I believed 
in one thing : the Air Force ought to be organized separately. I believe, 
after we proved that West Point and Annapolis could not be sufficiently 



55 



<][ g Public Papers of the Presidents 

large enough, I believe the Air Forces ought to have an academy. I 
believed that. I was on a board to help decide that, after I had made 
up my own mind long before. I personally think I know exactly where 
it ought to be; I have kept my mouth shut, and I would never admit 
to anyone where I think it should be. So I say I will look into this; I 
had not heard of this reopening. 

Q. Richard L. Strout, Christian Science Monitor: Mr. President, 
could you assist us in getting a press conference with Mr. Brownell? 
You just suggested that we should have one. Some of us have been 
trying to get one for some months now. [Laughter] 

the president. Well, I will tell you, everybody has his own method 
of operating. I don't know over in the Department of Justice whether 
it is proper and to the best interests of everybody to have periodic press 
conferences. 

I would say that when there is a legitimate request made for informa- 
tion, the information would be forthcoming. How he should put it out 
is something else. That is for his decision, and if I can't trust Cabinet 
officers for that, I would have a pretty hard time. 

Q. Marvin L. Arrowsmith, Associated Press: Mr. President, on the 
basis of Secretary Dulles' preliminary talks with Ambassador Zaroubin, 
are there any indications that Russia is acting in good faith interest in 
your atomic pool proposal? 

the president. I don't believe, Mr. Arrowsmith, that you could make 
a conclusion that would be that far-reaching. I would say this: it is 
encouraging that Mr. Dulles and the Ambassador have had talks in a 
friendly atmosphere, and that there is some attempt being made in that 
kind of atmosphere to find out exactly what each other means so as to 
pursue the subject. I don't believe you could say that there is any kind 
of proof of anything. 

Q. Lloyd M. Schwartz, Fairchild Publications: Mr. President, I 
wonder if you could give us some of the reasoning behind your recom- 
mendation in your agriculture message for a direct payment system for 
the wool growers? 

the president. Well, it is a long and involved story. 

We produce quite a small proportion of our wool, and there is a pro- 
vision in the law now that sets up a target of 360 million pounds a year 
as what we would like to produce domestically. You see, wool has 

56 



Dwight D. Eisenhower, IQ54 ^ 9 

always in the past, at least, been a very critical material in time of war, 
and you would like to have a reserve produced here. 

Now, when we are making that small proportion though of our own 
requirements, meaning that small proportion from domestic sources of 
our own requirements, it seemed bad to put up a tariff which would be 
another bar, another obstruction, in international trade, and where we 
would have the whole United States paying this much money in order 
to reach this 360 million pounds target or anything under it. 

So the idea was to take from the general revenues, because there is 
produced by this tariff some six times as much as would be involved in 
the payments made to the domestic producers. It seemed a good idea 
to do it that way in this one article. 

Now, it was a long and inner struggle with me to come to this decision, 
but I did because I thought it was the best under the circumstances. 

Q. Robert G. Spivack, New York Post: Mr. President, in the State of 
the Union Message, I believe the figure of 2200 security risks was used, 
and I wondered if there is any breakdown available now on that since 
the 1456 figure? 

the president. No detailed report has yet been made to me, and it 
is perfectly understandable. The Civil Service Commission has a very 
hard job, and there have been more than one hundred and eighty some 
thousand people dropped, whose positions have not been filled; so this 
2200 is not a great number. 

The only thing that I can tell you about them is — and some of them, 
by the way, probably resigned without knowing of these derogatory re- 
marks, or at least had not been notified by us of these derogatory remarks 
on their record. There were 2200 people against whom the Government 
intended to move because they believed them to be security risks, remarks 
already on their records showing that there was some doubt. Those 
2200 have gone in one form or another. 

Q. Hazel Markel, Mutual Broadcasting System: Mr. President, your 
predecessor has said within the last few days that it, in his opinion, was 
highly probable or possible, at least, that a woman might be President. 
I wonder, after a year in your office, which is conceded to be the hardest 
job in the world, if you think it is possible that a woman might handle 
those arduous duties? 

the president. You know, it makes a subject that we could have, I 

57 



<][ 9 Public Papers of the Presidents 

think, a very interesting conversation on; but it is possible that out of my 
deep respect for women's intelligence as well as my admiration for their 
many other qualities — [laughter] — that I might reach the conclusion that 
they had too much sense — [laughter] — to want the job. 

I would know of no reason why a woman's brain and heart couldn't 
be used there as well as a man's; but I don't think she would like it. 

Q. Chalmers M. Roberts, Washington Post: Mr. President, Secretary 
Dulles said in his speech last night that the National Security Council 
and yourself had made a decision, a basic decision he called it, that in 
the future we would confront any possible aggression by what he called, 
and I quote, "a great capacity to retaliate instantly by means and at places 
of our own choosing." Could you elucidate on that somewhat for us, sir? 

the president. No, I think no amplification of the statement is either 
necessary or wise. Let us put it this way : the more destructive that be- 
comes, a bomb or any other article or missile that you can carry, the more 
value you place on the element of surprise in war. In other words, Pearl 
Harbor threw a defeat on us because of surprise. But if you could imagine 
multiplying the effect of Pearl Harbor, then you will see something of 
what the element of surprise has come to be. About your only defense 
is the knowledge that there is a strong retaliatory power. 

He was merely stating what, to my mind, is a fundamental truth and 
really doesn't take much decision; it is just a fundamental truth. 

Q. Anthony H. Leviero, New York Times: Have these new weapons 
caused any change in our concept of balanced forces? 

the president. You know, it is an odd thing: every time I read about 
balanced forces in the papers, there seems to be a connotation that this 
means 33 percent for one, 33 percent for the next, and so on, and this 
applies both to men and to money. Now, to the professional, balanced 
forces means something entirely different. It means forces that are ad- 
justed to the needs of the time or the needs of the battle. 

When we went into Normandy, and there are some of you here that 
went in with me, you will remember on the first few days we had a terrific 
preponderance of naval and air strength because it was difficult to get 
ground strength. But as time went on, the ground strength grew as com- 
pared to these other two; but at all times we felt we were balanced with 
respect to the job we had. 

Now, when I say, therefore, "balanced," I think we are achieving every 

58 



Dwight D. Eisenhower, ig54 *J 9 

day a better balance. But it is not balance in the sense of one-third, one- 
third, one-third. 

Q. Oscar E. Naumann, New York Journal of Commerce: Mr. Presi- 
dent, yesterday the Assistant Secretary of Agriculture said the Depart- 
ment is considering a proposal to sell a large quantity of surplus butter 
and cottonseed oil to Russia. Are you in favor of selling our farm sur- 
pluses to Russia, if she wants to buy them? 

the president. Well, you made a long jump from the statement that 
I had heard. I called up, just before I came over here, and they said 
there was no such statement ever made in the Department of Agriculture. 
So you are posing a question on something that I am sure there is some 
misunderstanding somewhere about. 

This whole question of trading — East and West — in nonstrategic 
supplies is constantly under study, and it will be continued to be studied. 
I will give you my conclusions on it when I see the results of everybody's 
opinions and analysis. 

Q. Clark R. Mollenhoff, Des Moinies Register and Tribune : Mr. Presi- 
dent, could you tell us what you had in mind in the way of control and 
protection of welfare funds for the unions, and what caused you to put 
that in the Message? 

the president. Here we have organisms, as I see it, that function 
under the auspices of the Federal Government. - 

Now, any kind of funds that achieve a public basis, to my mind they 
ought to be out on the table, spread for all to see, that is all. As a matter 
of fact, I was thinking of the welfare of the people who are supposed to be 
protected by those funds, that is all. 

Q. Mr. Mollenhoff: Were you thinking in terms of State or Federal 
control on that? 

the president. Well, I always prefer State if it can be done that way. 

Q. Alice F. Johnson, Seattle Times: Mr. President, a year ago in your 
State of the Union Message you recommended statehood eventually, for 
Alaska, under certain circumstances. This year you didn't even mention 
Alaska. Does that mean that you are less favorably disposed toward 
granting statehood to Alaska? 

the president. It merely means that the circumstances that I would 
lay down as the complete justification for Alaskan statehood have not yet 
arrived. 



59 



<J| g Public Papers of the Presidents 

Q. A. Robert Smith, Portland Oregonian: Mr. President, in your 
State of the Union address, you spoke of the need for the Federal Govern- 
ment continuing to build resource development projects, and you said in 
the next fiscal year work will be started on 23 projects. Could you be any 
more specific about location or type of projects, sir? 

the president. No, not at this moment. 

We went over this whole map of the United States, but I can't tell you 
exactly what they are. There are some — there are one or two — in which 
everybody is very keen on; and I remember one that affects the North- 
west. But there are international as well as other kinds of problems that 
have to be solved before you can go any further with them. 

Q. Robert E. Clark, International News Service: Mr. President, do 
you have any reports of a Communist buildup of men or material in 
Korea, in violation of the truce terms? 

THE PRESIDENT. No. 

Now, the first thing that comes to my mind is — some of the details of 
that truce agreement now, of course, slip my mind ; but, of course, in gen- 
eral the evidence is they have reduced their ground forces, taking out some 
of them. They have done a very great deal of digging and producing 
strong defensive lines. They have done a very large amount, a sur- 
prisingly large amount, in economic rebuilding in North Korea, appar- 
ently treating the North Korean area almost like it was an economic ad- 
junct or part of the land across the Yalu. But as far as actual buildup, 
I would say, aside from building of certain things that might have a mili- 
tary usefulness, there is no evidence of that kind. 

Q. Kenneth M. Scheibel, Gannett Newspapers: Mr. President, if the 
Congress turns down the flexible farm price plan and extends the 90 
percent of parity for another year or 2 years beginning in 1955, would 
you go along with that or would you veto a measure like that? 

the president. I never can veto anything in advance. I have to wait 
and take a look, because, let me point this out, there is no item veto possi- 
ble in the Federal Government. Most States have what they call the item 
veto. The Federal Government, the President, does not have that right. 
Consequently, sometimes things are so designed that it is impossible to veto 
a bill merely because there is some provision of it that you believe to be 
in error. 

Q. Lucian C. Warren, Buffalo Courier-Express: Mr. President, did 

60 



Dwight D. Eisenhower, ig$4 <J 9 

you have a chance before you sent your labor message to consult with 
the legislative leaders in Congress, particularly the committee chairmen 
and subcommittee chairmen about your specific recommendations on 
labor? 

the president. I can't recall what was the latest conference we had 
with all these people since last January 20th. These people, every time 
this subject has come up, have recurrently been brought back in; both 
Mr. McConnell and Senator Smith, and so on, come back in. 

We have talked about these things with numerous people on the Hill. 
But I can't say and I do not recall that the exact recommendations I sent 
down were finally put in front of them and read to them. 

Q. Marvin L. Arrowsmith, Associated Press: Mr. President, some 
members of your own party in Congress are saying that your farm pro- 
gram is not politically feasible in this election year. Would you comment 
on that? 

the president. Well, I don't think I am too smart politically, but 
I don't believe that anyone can study that problem as long as this adminis- 
tration has studied it, I don't believe you can call in people from every 
section of this country, go out to them and meet them, talk to them, what 
are their problems, and believe that this particular system we now have 
is workable, practicable, and will help farmers. I tell you, I am trying 
to help agriculture in the utter conviction that a prosperous stable agri- 
culture is essential to this Nation. 

Now, if it is not politically feasible, why, we will find out. I believe 
it is right. 

Q. Clark R. Mollenhoff, Des Moines Register and Tribune: Mr. 
President, was the House Agricultural Committee talked to with respect 
to the specific agricultural program that you proposed? 

the president. During the course of the year? 

Q. Mr. Mollenhoff : No, the specific program as forwarded this week. 

the president [to Mr. Hagerty]. We had it last week when Mr. Hope 
was up? 

Mr. Hagerty: Yes. 

the president. I don't know the exact details, but at the meetings 
of leaders, the general provisions of these bills were placed in front of 
them. That does not mean to commit them to any complete prior and 
detailed agreement, but they were all certainly shown to them. 

51986—60 8 "* 



<| 9 Public Papers of the Presidents 

Merriman Smith, United Press: Thank you, Mr. President. 

note: President Eisenhower's twenty- 11:07 o'clock on Wednesday morning, 
fourth news conference was held in the January 13, 1954. In attendance: 178. 
Executive Office Building from 10:33 to 

10 f§ Special Message to the Congress on Old 
Age and Survivors Insurance and on Federal 
Grants-in-Aid for Public Assistance Programs. 
January 14, 1954 

To the Congress of the United States: 

I submit herewith for the consideration of the Congress a number of 
recommendations relating to the Old Age and Survivors Insurance 
System and the Federal grant-in-aid programs for public assistance. 

The human problems of individual citizens are a proper and important 
concern of our government. One such problem that faces every individ- 
ual is the provision of economic security for his old age and economic 
security for his family in the event of his death. To help individuals 
provide for that security — to reduce both the fear and the incidence of 
destitution to the minimum — to promote the confidence of every individ- 
ual in the future — these are proper aims of all levels of government, 
including the Federal Government. 

Private and group savings, insurance, and pension plans, fostered by 
a healthy, fully functioning economy, are a primary means of protection 
against the economic hazards of old age and death. These private 
savings and plans must be encouraged, and their value preserved, by 
sound tax and fiscal policies of the Government. 

But in addition, a basic, nation-wide protection against these hazards 
can be provided through a government social insurance system. Build- 
ing on this base, each individual has a better chance to achieve for 
himself the assurance of continued income after his earning days are 
over and for his family after his death. In response to the need for 
protection arising from the complexities of our modern society, the Old 
Age and Survivors Insurance system was developed. Under it nearly 
70 million persons and their families are now covered, and some 6 million 
are already its beneficiaries. Despite shortcomings which can be cor- 

62 



Dwight D. Eisenhower, ig$4 •][ IO 

rected, this system is basically sound. It should remain, as it has been, 
the cornerstone of the government's programs to promote the economic 
security of the individual. 

Under Old Age and Survivors Insurance (OASI), the worker during 
his productive years and his employer both contribute to the system in 
proportion to the worker's earnings. A self-employed person also con- 
tributes a percentage of his earnings. In return, when these bread- 
winners retire after reaching the age of 65, or if they die, they or their 
families become entitled to income related in amount to their previous 
earnings. The system is not intended as a substitute for private savings, 
pension plans and insurance protection. It is, rather, intended as the 
foundation upon which these other forms of protection can be soundly 
built. Thus the individual's own work, his planning, and his thrift will 
bring him a higher standard of living upon his retirement, or his family 
a higher standard of living in the event of his death, than would 
otherwise be the case. Hence the system both encourages thrift and 
self-reliance, and helps to prevent destitution in our national life. 

In offering, as I here do, certain measures for the expansion and im- 
provement of this system, I am determined to preserve its basic principles. 
The two most important are : ( 1 ) it is a contributory system, with both 
the worker and his employer making payments during the years of active 
work; (2 ) the benefits received are related in part to the individual's earn- 
ings. To these sound principles our system owes much of its wide national 
acceptance. 

During the past year we have subjected the Federal social security 
system to an intensive study which has revealed certain limitations and 
inequities in the law as it now stands. These should be corrected. 

1 . OASI Coverage Should Be Broadened. 

My message to the Congress on August 1, 1953, recommended legis- 
lation to bring more persons under the protection of the OASI system. 
The new groups that I recommended be covered — about ten million 
additional people — include self-employed farmers; many more farm work- 
ers and domestic workers; doctors, dentists, lawyers, architects, account- 
ants, and other self-employed professional people; members of State and 
local retirement systems on a voluntary group basis; clergymen on a 
voluntary group basis; and several smaller groups. I urge the Congress 
to approve this extension of coverage. 

63 



<J[ 10 Public Papers of the Presidents 

Further broadening of the coverage is being considered by the Com- 
mittee on Retirement Policy for Federal Personnel, created by the Con- 
gress. This Committee will soon report on a plan for expanding OASI 
to Federal employees not now protected, without impairing the independ- 
ence of present Federal retirement plans. After the Committee has 
made its report, I shall make appropriate recommendations on that sub- 
ject to the Congress. 

Extension of coverage will be a highly important advance in our OASI 
system, but other improvements are also needed. People over 65 years 
of age who can work should be encouraged to do so and should be per- 
mitted to take occasional or part-time jobs without losing their benefits. 
The level of benefits should be increased. Certain defects in and injus- 
tices under the present law should be eliminated. I submit the following 
recommendations to further these purposes. 

2. The Present "Retirement Test 33 Should Be Liberalized and Its Dis- 
crimination Against the Wage Earner Should Be Removed. 

By depriving an OASI beneficiary of his benefit payment for any month 
in which he earns wages of more than $75, present law imposes an undue 
restraint on enterprise and initiative. Retired persons should be en- 
couraged to continue their contributions to the productive needs of the 
nation. I am convinced that the great majority of our able-bodied older 
citizens are happier and better off when they continue in some productive 
work after reaching retirement age. Moreover, the nation's economy 
will derive large benefits from the wisdom and experience of older citizens 
who remain employed in jobs commensurate with their strength. 

I recommend, therefore, that the first $1000 of a beneficiary's annual 
earnings be exempted under the retirement test, and that for amounts 
earned above $ 1 000 only one month's benefit be deducted for each addi- 
tional $80 earned. 

To illustrate the effect of these changes : a beneficiary could take a $200 
a month job for five months without losing any benefits, whereas under 
present law he would lose five months' benefits. He could work through- 
out the year at $90 a month and lose only one month's benefit, whereas 
under present law he would lose all twelve. 

Approval of this recommendation will also remove the discriminatory 
treatment of wage earners under the retirement test. Self-employed 
persons already have the advantage of an exemption on an annual basis, 

64 



Dwight D. Eisenhower, ig^ C[[ 10 

with the right to average their earnings over the full year. The amend- 
ment I have proposed would afford this advantage, without discrim- 
ination, to all beneficiaries. 

3. OASI Benefits Should Be Increased. 

Today thousands of OASI beneficiaries receive the minimum benefit 
of twenty-five dollars a month. The average individual benefit for retired 
workers approximates fifty dollars a month. The maximum benefit for 
an individual is $85 a month. For OASI to fulfill its purpose of helping 
to combat destitution, these benefits are too low. 

I recommend, therefore, that benefits now being received by retired 
workers be increased on the basis of a new formula to be submitted to 
the appropriate Committees by the Secretary of Health, Education, and 
Welfare. This formula should also provide increases for workers retiring 
in the future, raising both the minimum and the maximum benefits. 
These increases will further the objectives of the program and will 
strengthen the foundation on which its participants may build their own 
security. 

4. Additional Benefit Credits Should Be Provided. 

The maintenance of a relationship between the individual's earnings 
and the benefits he receives is a cornerstone of the OASI system. How- 
ever, only a part of many workers' annual earnings are taken into account 
for contribution and benefit purposes. Although in 1938 only the first 
$3000 of a worker's annual earnings were considered for contribution 
and benefit purposes, statistical studies reveal that in that year 94% of 
full-time male workers protected by OASI had all of their earnings cov- 
ered by the program. By 1950 less than half of such workers — 44% — 
had their full earnings covered by the program, so the Congress increased 
the earnings base to $3600. 

Today, the earnings base of $3600 covers the full earnings of only 40% 
of our regular male workers. It is clear, therefore, that another revision 
of this base is needed to maintain a reasonable relationship between a 
worker's benefits and his earnings. 

I recommend, therefore, that the earnings base for the calculation of 
OASI benefits and payroll taxes be raised to $4200, thus enabling 
15,000,000 people to have more of their earnings taken into account by 
the program. 



65 



<J[ 10 Public Papers of the Presidents 

5. Benefits Should Be Computed on a Fairer Basis. 

The level of OASI benefits is related to the average of a worker's past 
earnings. Under present law periods of abnormally low earnings, or 
no earnings at all, are averaged in with periods of normal earnings, 
thereby reducing the benefits received by the retired worker. In many 
instances, a worker may earn little or nothing for several months or 
several years because of illness or other personal adversity beyond his 
power of prevention or remedy. Thus the level of benefits is reduced 
below its true relation to the earning capabilities of the employee. More- 
over, if the additional millions of persons recommended for inclusion 
under OASI are brought into the program in 1955 without modification 
of present law, their average earnings will be sharply lowered by including 
as a period of no earnings the period from 1951 to 1955 when they 
were not in the program. I recommend, therefore, that in the computa- 
tion of a worker's average monthly wage, the four lowest years of earnings 
be eliminated. 

6. The Benefit Rights of the Disabled Should Be Protected. 

One of the injustices in the present law is its failure to make secure 
the benefit rights of the worker who has a substantial work record in 
covered employment and who becomes totally disabled. If his disa- 
bility lasts four years or less, my preceding recommendation will alleviate 
this hardship. But if a worker's earnings and contributions cease for 
a longer period, his retirement rights, and the survivor rights of his widow 
and children may be reduced or even lost altogether. Equity dictates 
that this defect be remedied. I recommend, therefore, that the benefits 
of a worker who has a substantial work record in covered employment 
and who becomes totally disabled for an extended period be maintained 
at the amount he would have received had be become 65 and retired 
on the date his disability began. 

The injustice to the disabled should be corrected not simply by pre- 
serving these benefit rights but also by helping them to return to employ- 
ment wherever possible. Many of them can be restored to lives of 
usefulness, independence and self-respect if, when they apply for the 
preservation of their benefit rights, they are promptly referred to the 
Vocational Rehabilitation agencies of the States. In the interest of these 
disabled persons, a close liaison between the OASI system and these 
agencies will be promptly established upon approval of these recom- 

66 



Dwight Z). Eisenhower, IQ54 ^ IO 

mendations by the Congress. Moreover, in my message of January 18 
to the Congress, I shall propose an expanded and improved program 
of Vocational Rehabilitation. 

COSTS 

I am informed by the Secretary of Health, Education and Welfare 
that the net additional cost of the recommendations herein presented 
would be, on a long-term basis, about one-half of one percent of the 
annual payrolls subject to OASI taxes. The benefit costs will be met 
for at least the next fifteen to twenty-five years under the step-rate 
increases in OASI taxes already provided in the law. 

PUBLIC ASSISTANCE 

An important by-product of the extension of the protection of the 
OASI system and the increase in its benefit scale is the impact on public 
assistance programs. Under these programs States and localities provide 
assistance to the needy aged, dependent children, blind persons and 
the permanently and totally disabled, with the Federal Government 
sharing in the cost. 

As broadened OASI coverage goes into effect, the proportion of our 
aged population eligible for benefits will increase from forty-five percent 
to seventy-five percent in the next five or six years. Although the need 
for some measure of public assistance will continue, the OASI program 
will progressively reduce, year by year, the extent of the need for public 
assistance payments by the substitution of OASI benefits. I recommend 
that the formula for Federal sharing in the public assistance programs for 
these purposes reflect this changing relationship without prejudicing in 
any manner the receipt of public assistance payments by those whose 
need for these payments will continue. 

Under the present public assistance formula some States receive a 
higher percentage share of Federal funds than others. In the program of 
old-age assistance, for example, States making low assistance payments 
receive up to eighty percent Federal funds in defraying the costs of their 
programs. States making high assistance payments receive about sixty-five 
percent of Federal funds in that portion of the old-age assistance pay- 
ments which is within the $55 maximum for Federal participation. 

This variation in Federal participation is the result of a Congressional 
determination that the Federal sharing should be higher for States which, 

67 



<][ io Public Papers of the Presidents 

because of low resources, generally make low assistance payments. In 
order better to achieve this purpose, I recommend that a new formula be 
enacted. It should take into account the financial capacity of the several 
States to support their public assistance programs by adopting, as a meas- 
ure of that capacity, their per capita income. Such a new formula will 
also facilitate the inclusion, in the old-age assistance program, of a factor 
reflecting the expansion of OASI. 

The present formula for Federal sharing in public assistance programs 
requires adjustment from another standpoint. Under present law, the 
Federal Government does not share in any part of a monthly old-age as- 
sistance payment exceeding $55. Yet many of these payments must ex- 
ceed this amount in order to meet the needs of the individual recipient, 
particularly where the individual requires medical care. I consider it 
altogether appropriate for the Federal Government to share in such pay- 
ments and recommend, therefore, that the present $55 maximum be 
placed on an average rather than on an individual basis. Corresponding 
changes in the other public assistance programs would be made. This 
change in the formula would enable States to balance high payments in 
cases of acute need against low payments where the need is relatively 
minor. In addition, great administrative simplification would be 
achieved. 

A new public assistance formula should not become effective until the 
States have had an opportunity to plan for it. Until such time, the 1952 
public assistance amendments should be extended. 



The recommendations I have here submitted constitute a coordinated 
approach to several major aspects of the broad problem of achieving 
economic security for Americans. Many other phases of this national 
problem exist and will be reflected in legislative proposals from time to 
time to the Congress. The effort to prevent destitution among our people 
preserves a greater measure of their freedom and strengthens their initia- 
tive. These proposals are constructive and positive steps in that direction, 
and I urge their early and favorable consideration by the Congress. 

Dwight D. Eisenhower 



68 



Dwight D. Eisenhower, 1954 ^ 1 1 

1 1 ^ Special Message to the Congress on the 
Health Needs of the American People. 
January 18, 1954 

To the Congress of the United States: 

I submit herewith for the consideration of the Congress recommenda- 
tions to improve the health of the American people. 

Among the concerns of our government for the human problems of 
our citizens, the subject of health ranks high. For only as our citizens 
enjoy good physical and mental health can they win for themselves the 
satisfactions of a fully productive, useful life. 

The Health Problem 

The progress of our people toward better health has been rapid. Fifty 
years ago their average life span was 49 years; today it is 68 years. In 
1900 there were 676 deaths from infectious diseases for every 100,000 of 
our people; now there are 66. Between 19 16 and 1950, maternal deaths 
per 100,000 live births dropped from 622 to 83. In 19 16, ten percent 
of the babies born in this country died before their first birthday; today, 
less than 3 percent die in their first year. 

This rapid progress toward better health has been the result of many 
particular efforts, and of one general effort. The general effort is the 
partnership and teamwork of private physicians and dentists and of 
those engaged in public health, with research scientists, sanitary engi- 
neers, the nursing profession and the many auxiliary professions related 
to health protection and care in illness. To all these dedicated people, 
America owes most of its recent progress toward better health. 

Yet, much remains to be done. Approximately 224,000 of our people 
died of cancer last year. This means that cancer will claim the lives of 
25,000,000 of our 160,000,000 people unless the present cancer mortality 
rate is lowered. Diseases of the heart and blood vessels alone now take 
over 8 1 7,000 lives annually. Over seven million Americans are estimated 
to suffer from arthritis and rheumatic diseases. Twenty-two thousand 
lose their sight each year. Diabetes annually adds 100,000 to its roll 
of sufferers. Two million of our fellow citizens now handicapped by 
physical disabilities could be, but are not, rehabilitated to lead full and 

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<J 1 1 Public Papers of the Presidents 

productive lives. Ten million among our people will at some time in 
their lives be hospitalized with mental illness. 

There exist in our Nation the knowledge and skill to reduce these 
figures, to give us all still greater health protection and still longer life. 
But this knowledge and skill are not always available to all our people 
where and when they are needed. Two of the key problems in the field 
of health today are the distribution of medical facilities and the costs of 
medical care. 

Not all Americans can enjoy the best in medical care — because not 
always are the requisite facilities and professional personnel so distributed 
as to be available to them, particularly in our poorer communities and 
rural sections. There are, for example, 159 practicing physicians for 
every 100,000 of the civilian population in the Northeast United States. 
This is to be contrasted with 126 physicians in the West, 1 16 in the North 
central area, and 92 in the South. There are, for another example, only 
4 or 5 hospital beds for each 1,000 people in some States, as compared 
with 10 or 1 1 in others. 

Even where the best in medical care is available, its costs are often 
a serious burden. Major, long-term illness can become a financial catas- 
trophe for a normal American family. Ten percent of American families 
are spending today more than $500 a year for medical care. Of our 
people reporting incomes under $3000, about 6 percent spend almost a 
fifth of their gross income for medical and dental care. The total private 
medical bill of the nation now exceeds nine billion dollars a year — an 
average of nearly $200 a family — and it is rising. This illustrates the 
seriousness of the problem of medical costs. 

We must, therefore, take further action on the problems of distribution 
of medical facilities and the costs of medical care, but we must be careful 
and f arsighted in the action that we take. Freedom, consent, and individ- 
ual responsibility are fundamental to our system. In the field of medical 
care, this means that the traditional relationship of the physician and his 
patient, and the right of the individual to elect freely the manner of his 
care in illness, must be preserved. 

In adhering to this principle, and rejecting the socialization of medicine, 
we can still confidently commit ourselves to certain national health goals. 

One such goal is that the means for achieving good health should be 
accessible to all. A person's location, occupation, age, race, creed, or 



70 



Dwight D. Eisenhower, IQ54 ^ 1 1 

financial status should not bar him from enjoying this access. 

Second, the results of our vast scientific research, which is constantly 
advancing our knowledge of better health protection and better care in 
illness, should be broadly applied for the benefit of every citizen. There 
must be the fullest cooperation among the individual citizen, his personal 
physician, the research scientists, the schools of professional education, 
and our private and public institutions and services — local, State, and 
Federal. 

The specific recommendations which follow are designed to bring us 
closer to these goals. 

CONTINUATION OF PRESENT FEDERAL PROGRAMS 

In my Budget Message appropriations will be requested to carry on 
during the coming fiscal year the health and related programs of the 
newly-established Department of Health, Education, and Welfare. 

These programs should be continued because of their past success and 
their present and future usefulness. The Public Health Service, for ex- 
ample, has had a conspicuous share in the prevention of disease through 
its efforts to control health hazards on the farm, in industry and in the 
home. Thirty years ago, the Public Health Service first recommended a 
standard milk sanitation ordinance; by last year this ordinance had been 
voluntarily adopted by 1558 municipalities with a total population of 
70 million people. Almost twenty years ago the Public Health Service first 
recommended restaurant sanitation ordinances; today 685 municipalities 
and 347 counties, with a total population of 90 million people, have such 
ordinances. The purification of drinking water and the pasteurization of 
milk have prevented countless epidemics and saved thousands of lives. 
These and similar field projects of the Public Health Service, such as tech- 
nical assistance to the States, and industrial hygiene work, have great 
public value and should be maintained. 

In addition, the Public Health Service should be strengthened in its 
research activities. Through its National Institutes of Health, it main- 
tains a steady attack against cancer, mental illness, heart diseases, dental 
problems, arthritis and metabolic diseases, blindness, and problems in 
microbiology and neurology. The new sanitary engineering laboratory at 
Cincinnati, to be dedicated in April, will make possible a vigorous attack 
on health problems associated with the rapid technological advances in 
industry and agriculture. In such direct research programs and in Public 

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<][ 1 1 Public Papers of the Presidents 

Health Service research grants to State and local governments and to pri- 
vate research institutions lies the hope of solving many of today's perplex- 
ing health problems. 

The activities of the Children's Bureau and its assistance to the States 
for maternal and child health services are also of vital importance. The 
programs for children with such crippling diseases as epilepsy, cerebral 
palsy, congenital heart disease, and rheumatic fever should receive con- 
tinued support. 

MEETING THE COST OF MEDICAL CARE 

The best way for most of our people to provide themselves the resources 
to obtain good medical care is to participate in voluntary health insur- 
ance plans. During the past decade, private and non-profit health 
insurance organizations have made striking progress in offering such 
plans. The most widely purchased type of health insurance, which is 
hospitalization insurance, already meets approximately 40 percent of 
all private expenditures for hospital care. This progress indicates that 
these voluntary organizations can reach many more people and provide 
better and broader benefits. They should be encouraged and helped to 
do so. 

Better health insurance protection for more people can be provided. 

The Government need not and should not go into the insurance busi- 
ness to furnish the protection which private and non-profit organizations 
do not now provide. But the Government can and should work with 
them to study and devise better insurance protection to meet the public 
need. 

I recommend the establishment of a limited Federal reinsurance serv- 
ice to encourage private and non-profit health insurance organizations 
to offer broader health protection to more families. This service would 
reinsure the special additional risks involved in such broader protection. 
It can be launched with a capital fund of twenty-five million dollars 
provided by the Government, to be retired from reinsurance fees. 

NEW GRANT-IN-AID APPROACH 

My message on the State of the Union and my special message of 
January fourteenth pointed out that Federal grants-in-aid have hitherto 
observed no uniform pattern. Response has been made first to one 
and then to another broad national need. In each of the grant-in-aid 

72 



Dwight D. Eisenhower, IQ54 ^ 1 1 

programs, including those dealing with health, child welfare and rehabili- 
tation of the disabled, a wide variety of complicated matching formulas 
have been used. Categorical grants have restricted funds to specified 
purposes so that States often have too much money for some programs 
and not enough for others. 

This patchwork of complex formulas and categorical grants should 
be simplified and improved. I propose a simplified formula for all of 
these basic grant-in-aid programs which applies a new concept of Federal 
participation in State programs. This formula permits the States to use 
greater initiative and take more responsibility in the administration of 
the programs. It makes Federal assistance more responsive to the needs 
of the States and their citizens. Under it, Federal support of these 
grant-in-aid programs is based on three general criteria: 

First, the States are aided in inverse proportion to their financial capac- 
ity. By relating Federal financial support to the degree of need, we are 
applying the proven and sound formula adopted by the Congress in the 
Hospital Survey and Construction Act. 

Second, the States are also helped, in proportion to their population, 
to extend and improve the health and welfare services provided by the 
grant-in-aid programs. 

Third, a portion of the Federal assistance is set aside for the support of 
unique projects of regional or national significance which give promise 
of new and better ways of serving the human needs of our citizens. 

Two of these grant-in-aid programs warrant the following further 
recommendations. 

REHABILITATION OF THE DISABLED 

Working with only a small portion of the disabled among our people, 
Federal and State governments and voluntary organizations and institu- 
tions have proved the advantage to our nation of restoring handicapped 
persons to full and productive lives. 

When our State-Federal program of vocational rehabilitation began 
in 1920, the services rendered were limited largely to vocational counsel- 
ing, training and job placement. Since then advancing techniques in the 
medical and social aspects of rehabilitation have been incorporated into 
that program. 

There are now 2,000,000 disabled persons who could be rehabilitated 
and thus returned to productive work. Under the present rehabilitation 

73 



<J ii Public Papers of the Presidents 

program only 60,000 of these disabled individuals are returned each year 
to full and productive lives. Meanwhile, 250,000 of our people are annu- 
ally disabled. Therefore, we are losing ground at a distressing rate. The 
number of disabled who enter productive employment each year can be 
increased if the facilities, personnel and financial support for their rehabili- 
tation are made adequate to the need. 

Considerations of both humanity and national self-interest demand 
that steps be taken now to improve this situation. Today, for example, 
we are spending three times as much in public assistance to care for non- 
productive disabled people as it would cost to make them self-sufficient 
and taxpaying members of their communities. Rehabilitated persons as 
a group pay back in Federal income taxes many times the cost of their 
rehabilitation. 

There are no statistics to portray the full depth and meaning in human 
terms of the rehabilitation program, but clearly it is a program that builds 
a stronger America. 

We should provide for a progressive expansion of our rehabilitation 
resources, and we should act now so that a sound foundation may be 
established in 1955. My forthcoming Budget Message will reflect this 
objective. Our goal in 1955 is to restore 70,000 disabled persons to pro- 
ductive lives. This is an increase of 10,000 over the number rehabilitated 
in 1953. Our goal for 1956 should be 100,000 rehabilitated persons, or 
40,000 persons more than those restored in 1953. In 1956, also, the States 
should begin to contribute from their own funds to the cost of rehabilitat- 
ing these additional persons. By 1959, with gradually increasing State 
participation to the point of equal sharing with the Federal government, 
we should reach the goal of 200,000 rehabilitated persons each year. 

In order to achieve this goal we must extend greater assistance to the 
States. We should do so, however, in a way which will equitably and 
gradually transfer increasing responsibility to the States. A program of 
grants should be undertaken to provide, under State auspices, specialized 
training for the professional personnel necessary to carry out the ex- 
panded program and to foster that research which will advance our 
knowledge of the ways of overcoming handicapping conditions. We 
should also provide, under State auspices, clinical facilities for rehabili- 
tative services in hospitals and other appropriate treatment centers. In 
addition, we should encourage State and local initiative in the develop- 



74 



Dwight D. Eisenhower, ig^4 tjf 1 1 

ment of community rehabilitation centers and special workshops for the 
disabled. 

With such a program the Nation could during the next five years 
return a total of 660,000 of our disabled people to places of full responsi- 
bility as actively working citizens. 

CONSTRUCTION OF MEDICAL CARE FACILITIES 

The modern hospital — in caring for the sick, in research, and in pro- 
fessional educational programs — is indispensable to good medical care. 
New hospital construction continues to lag behind the need. The total 
number of acceptable beds in this nation in all categories of non-Federal 
hospital services is now about 1,060,000. Based on studies conducted by 
State hospital authorities, the need for additional hospital beds of all 
types — chronic disease, mental, tuberculosis, as well as general — is con- 
servatively estimated at more than 500,000. 

A program of matching State and local tax funds and private funds 
in the construction of both public and voluntary non-profit hospitals 
where these are most needed is therefore essential. 

Since 1946, nearly $600 million in Federal funds have been allocated 
to almost 2,200 hospital projects in the States and Territories. This sum 
has been matched by over one and a quarter billion dollars of State and 
local funds. Projects already completed or under construction on Decem- 
ber 31, 1953, will add to our national resources 106,000 hospital beds 
and 464 public health centers. The largest proportion of Federal funds 
has been and is being spent in low-income and rural areas where the 
need for hospital beds is greatest and where the local means for providing 
them are smallest. This Federally stimulated accomplishment has by no 
means retarded the building of hospitals without Federal aid. Construc- 
tion costing in excess of one billion dollars has been completed in the last 
six years without such aid. 

Hospital construction, however, meets only part of the urgent need 
for medical facilities. 

Not all illness need be treated in elaborate general hospital facilities, 
costly to construct and costly to operate. Certain non-acute illness condi- 
tions, including those of our hospitalized aged people, requiring institu- 
tional bed care can be handled in facilities more economical to build and 
operate than a general hospital, with its diagnostic, surgical and treatment 
equipment and its full staff of professional personnel. Today beds in our 

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<]J 1 1 Public Papers of the Presidents 

hospitals for the chronically ill take care of only one out of every six 
persons suffering from such long-term illnesses as cancer, arthritis, and 
heart disease. The inadequacy of facilities and services to cope with such 
illnesses is disturbing. Moreover, if there were more nursing and con- 
valescent home facilities, beds in general hospitals would be released for 
the care of the acutely ill. This would also help to relieve some of the 
serious problems created by the present short supply of trained nurses. 

Physical rehabilitation services for our disabled people can best be given 
in hospitals or other facilities especially equipped for the purpose. Many 
thousands of people remain disabled today because of the lack of such 
facilities and services. 

Many illnesses, to be sure, can be cared for outside of any institution. 
For such illnesses a far less costly approach to good medical care than 
hospitalization would be to provide diagnostic and treatment facilities for 
the ambulatory patient. The provision of such facilities, particularly 
in rural areas and small isolated communities, will attract physicians to 
the sparsely settled sections where they are urgently needed. 

I recommend, therefore, that the Hospital Survey and Construction 
Act be amended as necessary to authorize the several types of urgently 
needed medical care facilities which I have described. They will be less 
costly to build than general hospitals and will lessen the burden on them. 

I present four proposals to expand or extend the present program : 

(i) Added assistance in the construction of non-profit hospitals for 
the care of the chronically ill. These would be of a type more economical 
to build and operate than general hospitals. 

(2) Assistance in the construction of non-profit medically supervised 
nursing and convalescent homes. 

(3) Assistance in the construction of non-profit rehabilitation facili- 
ties for the disabled. 

(4) Assistance in the construction of non-profit diagnostic or treat- 
ment centers for ambulatory patients. 

Finally, I recommend that in order to provide a sound basis for Federal 
assistance in such an expanded program, special funds be made available 
to the States to help pay for surveys of their needs. This is the procedure 
that the Congress wisely required in connection with Federal assistance in 
the construction of hospitals under the original Act. We should also con- 
tinue to observe the principle of State and local determination of their 
needs without Federal interference. 

76 



Dwight D. Eisenhower, IQ54 ^ 12 

These recommendations are needed forward steps in the development 
of a sound program for improving the health of our people. No nation 
and no administration can ever afford to be complacent about the health 
of its citizens. While continuing to reject government regimentation 
of medicine, we shall with vigor and imagination continuously search 
out by appropriate means, recommend, and put into effect new methods 
of achieving better health for all of our people. We shall not relax in 
the struggle against disease. The health of our people is the very essence 
of our vitality, our strength and our progress as a nation. 

I urge that the Congress give early and favorable consideration to the 
recommendations I have herein submitted. 

Dwight D. Eisenhower 

i 2 ^ Letter to President Hoover Regarding the 
Commission on Organization of the Executive 
Branch. January 18, 1954 

[ Released January 18, 1954. Dated January 16, 1954 ] 

Dear Mr. President: 

I appreciate very much your thoughtfulness in writing me relative to 
the progress that has been made by the Commission on Organization of 
the Executive Branch of the Government. 

The nation is faced with basic issues that must be resolved in every 
one of the areas that you have selected for study. You have enlisted 
the services of some of our most outstanding leaders for membership on 
the task forces that you have established to carry forward these studies. 
Please convey to them my personal appreciation of their willingness to 
serve in this manner. 

As you know I have a very real interest in the outcome of the work 
of the Commission. We are determined to do everything we can to 
put into effect sound principles of management in the conduct of the 
affairs of government. I look forward to having the benefit of your 
recommendations. 

The time, thought, and energy that you are putting into this program 
as Chairman of the Commission is a source of real inspiration to all of 

77 



<I 12 



Public Papers of the Presidents 



us. The country is to be congratulated that you have once again been 
willing to undertake leadership in this work. 
Sincerely, 

Dwight D. Eisenhower 



note: President Hoover's letter follows: 
My dear Mr. President: 

We have made progress in the major 
setup of the Commission on Organization 
of the Executive Branch of the Govern- 
ment. The Commission was created by 
Public Law No. 108 of July 10, 1953. 
The membership of the Commission was 
completed in the latter part of August 
and the Commission held its first meeting 
on September 29, 1953. 

The Presidential appointees to the 
Commission are: The Honorable Her- 
bert Hoover, Attorney General Herbert 
Brownell, Jr., The Honorable James A. 
Farley, Director of Defense Mobilization 
Arthur S. Flemming. 

The Vice President's appointees are: 
Senator Homer Ferguson, Senator John 
L. McClellan, Dean Solomon C. Hollister 
of the School of Engineering at Cornell 
University, Dean Robert G. Storey of the 
School of Law at Southern Methodist 
University. 

The Speaker's appointees are: Con- 
gressman Clarence J. Brown, Congress- 
man Chet Holifield, The Honorable 
Joseph P. Kennedy, Mr Sidney A. 
Mitchell. 

The Honorable John B. Hollister is 
the Executive Director. Five of these 
members served on the Reorganization 
Commission of 1947-50. 

As of the present we have created the 
following nine major Task Forces to un- 
dertake investigations and to make rec- 
ommendations. They are: 

The Business Organization of the De- 
partment of Defense, Chairman Charles 
R, Hook and more than 10 members. 
The various Task Forces already on work 
on fractions of these problems will be 
represented on this Committee and an- 
other such Task Force will be created on 
Procurement; 



Water Resources Development and 
Power, Chairman Admiral Ben Moreell 
and 25 members; 

Medical Services, Chairman Chauncey 
McCormick and 15 members; 

Personnel and Civil Service, Chairman 
President Harold W. Dodds and 9 
members ; 

Legal Services and Procedure of the 
Executive Branch of the Government, 
Chairman Judge James M. Douglas and 
15 members; 

Use and Disposal of Surplus Property, 
Chairman General Robert E. Wood and 
7 members; 

Subsistence Management, Chairman 
Joseph P. Binns and 8 members; 

Budgeting and Accounting, Chairman 
J. Harold Stewart and 6 members; 

Lending Agencies, Chairman Paul 
Grady and 10 members. 

In addition we are conducting staff 
investigations of certain other agencies 
as directed by the law. In all our work 
we have sought to avoid duplication with 
the work in progress for efficiency and 
economy by other Commissions, Commit- 
tees of Congress and the Departments. 

The members of the Task Forces are 
chosen solely because of their experience 
in different fields. I have considered it 
in the public interest not to include rep- 
resentatives of any particular group in- 
terest. The representatives of such 
groups will be given full hearings. 

The problems to be solved require a 
determination of fact and the deduction 
of recommendations therefrom. For the 
purpose of amassing the facts, each Task 
Force has been given adequate research 
staff. The recommendations of the Task 
Forces and of our staff will be reviewed 
by the Commission. 

Due to the large proportion of volun- 
tary service, the cash expenditures and 
outstanding obligations from September 



78 



Dwight D. Eisenhower, IQ54 ^ 14 

29 to December 31, 1953 are $152,035. Thus far, over 115 leading profes- 

Our paid staff comprises three persons, sional and administrative citizens have 

an Assistant to each Commissioner, to- been enlisted upon our Task Forces. I 

gether with research employees of the will forward to you a list of them and of 

Task Forces. Such clerical help as we the other men and women associated in 

require is mostly secured on a reimburs- the work. 

able basis from the Executive Depart- Yours faithfully, 

ments so as not to create a permanent Herbert Hoover 

staff. 



13 ^ Statement by the President on the Approval 
by the Netherlands Parliament of the European 
Defense Community Treaty. January 20, 1954 

I HAVE just learned that the Netherlands, through action today by the 
First Chamber, has completed legislative action on the treaty to create 
the European Defense Community. 

The Netherlands thus becomes the first country to complete the neces- 
sary legislative processes. I am gratified at the steady progress toward 
the achievement of conditions in Europe which will insure permanent 
peace and prosperity. 

1 4 ^ Annual Budget Message to the Congress : 
Fiscal Year 1955. January 21,1954 

To the Congress of the United States: 

I am transmitting herewith the Budget of the United States for the 
fiscal year ending June 30, 1955. 

The budget message is divided into two parts. The first part is a gen- 
eral statement summarizing the budget and a number of its most im- 
portant aspects. The second part includes pertinent details of my tax 
and legislative programs, and of the budget. Together the two parts 
comprise my budget message. 

When this administration took office on January 20 of last year one 
of its first concerns was the budget for the 1954 fiscal year, which had 
been sent to the Congress on January 9, 1953, by the previous adminis- 

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<J 14 Public Papers of the Presidents 

tration. With the cooperation of the Congress that budget promptly was 
revised and reduced. This new budget is the first prepared entirely by 
this administration. 

It provides adequately, in my judgment, for the national defense and 
the international responsibilities of the Nation — responsibilities which we 
must undertake as a leader of the free world. On the success of this 
leadership depends our national security and prosperity. The budget also 
provides adequately for the current needs of the Government and for 
constructive forward steps in our domestic responsibilities and programs. 

The recommended budget continues the strengthening of our military 
posture; our progress in the development and production of atomic 
weapons; the expansion of our system of continental defense; assistance 
in the development of the military strength of friendly nations; and pro- 
grams for rapid mobilization if an emergency should arise. 

Authority is recommended for new and advanced work on the peace- 
time uses of atomic energy in the earnest hope that present international 
relations can be improved and the wonders of nuclear power can be 
turned gradually to the development of a more abundant life for ourselves 
and all mankind. 

The budget contains provisions for legislative recommendations for 
expanding the coverage and increasing the benefits of our social security 
system; for promoting better housing conditions and more widespread 
home ownership in the Nation; for improving our system of education; 
for conserving our natural resources; for helping prevent the ravages of 
floods and soil erosion; for encouraging the expansion of adequate health 
and hospital care for our people; and for other constructive domestic 
purposes designed to strengthen the foundations of a stable and pros- 
perous economy. 

This budget continues the progress that has been made during the 
past year in reducing both requests for new appropriations and Govern- 
ment expenditures. The reductions in expenditures already accomplished, 
together with those now proposed, justify the tax reductions which took 
effect January 1 and the further tax revisions I am recommending. 
These lower taxes will encourage continued high capital investment and 
consumer purchases. Despite the substantial loss of revenue caused by 
these tax reductions, we have moved closer to a balanced budget. 

One of the first problems of this administration was to bring the budget 

80 



Dwight D. Eisenhower, IQ54 ^ 14 

under better control. That was substantially accomplished in the re- 
vision of the original budget document for the fiscal year 1954. Now an 
amount approximately equal to the savings made in this new budget is 
being returned to the public in tax reductions and tax revisions. This 
amount substantially exceeds the estimated budget deficit. 

In preparing this budget the administration has directed its attention 
to essential activities and programs rather than to those which some 
might consider desirable and appropriate, at this time, for the Federal 
Government to undertake. It assumes fairly stable conditions, internally 
and externally, during the period it covers. It allows for the continuing 
heavy demands of the national security programs on the budget. But as 
we continue to reduce and eliminate the less desirable or the unnecessary 
Government expenditures, it will become possible to turn to other pur- 
poses which are the most desirable in terms of their benefits to all of the 
people. 

This budget marks the beginning of a movement to shift to State and 
local governments and to private enterprise Federal activities which can 
be more appropriately and more efficiently carried on in that way. The 
lending activities of the Reconstruction Finance Corporation ; the services 
provided by the Inland Waterways Corporation; certain agricultural ac- 
tivities; and some aspects of our health, education, and welfare programs 
are examples of this type of action. In those cases where Federal partici- 
pation is necessary, the effort of this administration is to develop partner- 
ships rather than an exclusive and often paternalistic position for the 
Federal Government. 

This budget also benefits from material savings from the decreased 
costs of Federal operations resulting from our constant effort to improve 
the management of Government activities and to find better and less 
expensive ways of doing the things which must be done by the Federal 
Government. 

The total effect of the recommendations for the 1955 budget, under 
existing and proposed legislation, is shown with comparable figures for 
earlier years in the following table. The table also reflects certain techni- 
cal adjustments for 1955 and prior years which do not affect the budget 
surplus or deficit and are described in part II of this message. Both re- 
ceipts and expenditures include, insofar as can be determined, the esti- 
mated budgetary results of my recommendations for new legislation. 

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<][ 14. Public Papers of the Presidents 

Budget Totals 

[Fiscal years. In billions] 

1 954 estimated l 

Budget 1 955 
!95° l 95 l J 95 2 J953 docu- Cur- esti- 
actual actual actual actual merit rent mated 
New authority to incur obliga- 
tions $49-3 $82.9 $91.4 $80.2 $71.8 $60.7 $56.3 

Receipts: 
Under existing legislation .. . 36.5 47. 5 61.4 64.6 68.0 67.4 61.5 
Under proposed legislation .2 1.2 

Total receipts 36.5 47.5 61.4 64.6 68.0 67.6 62.7 

Expenditures: 
Under existing legislation ... 39-6 44 . o 65 . 4 74 . o 75 . 6 70.9 64 . 5 
Under proposed legislation 2.3 ( 2 ) 1 . 1 

Total expenditures 39-6 44.0 65.4 74 .0 77.9 70.9 65.6 

Surplus (+) or deficit (—).. . —3.1 +3-5 ~ 4-° —9-4 — 9-9 ~ 3-3 ~ 2 -9 

Cumulative unspent balances of 
appropriations at end of 
year 3 14. 1 3 50.3 68.8 78.7 67.4 66.5 54.1 

1 References to 1954 are to the 1954 budget document of January 9, 1953, as presented 
to the Congress, and to currently revised budget estimates. 

2 Less than 50 million dollars. 

3 Estimated. Detailed accounting data are not available. 

General budget policy. — This administration is dedicated to greater 
efficiency and economy in meeting the Nation's security requirements 
and the necessary and valid functions of the Government. 

The current estimates of the 1954 budget show that the requests for 
new appropriations were reduced about 12.5 billion dollars, new obliga- 
tional authority was reduced more than 1 1 billion dollars, and expendi- 
tures were reduced 7 billion dollars below the totals estimated in the 
1954 budget document of the previous administration. 

Similar reductions continue in the budget recommended for the fiscal 
year 1955. Recommended new obligational authority is 4.4 billion 
dollars less than the current estimate for the fiscal year 1954, 15.5 billion 
dollars less than recommended for that year in the 1954 budget docu- 
ment, and 23.9 billion dollars less than in 1953. Estimated expendi- 
tures for the fiscal year 1955 are 5.3 billion dollars less than the current 

82 



Dwight D. Eisenhower, IQ54 <J 14 

estimate for the fiscal year 1954, 12.3 billion dollars less than recom- 
mended in the 1954 budget document, and 8.4 billion dollars less than 
in 1953. 

Thus, new obligational authority has been reduced 15.5 billion dollars 
and estimated expenditures have been reduced 12.3 billion dollars since 
this administration took office. 

These reductions justified lower taxes. Without tax reductions, a 
budget surplus was in sight for the fiscal year 1955. 

So that most of the new savings could be passed along to the tax- 
payers of the Nation as a whole, with beneficial effects on our entire 
economy, I believed it best to adopt a course leading toward the twin 
goals of a balanced budget and tax reductions. 

The reductions in 1954 expenditures were devoted to reducing the 
large deficit forecast in the 1954 budget document. The anticipated 
savings in 1955 budget expenditures already have been reflected in the 
tax reductions of January 1 of this year and are also reflected in the tax 
revisions I am recommending in this message. 

Together these tax reductions will total nearly 5 billion dollars. 

We will still have a budgetary deficit of slightly less than 3 billion 
dollars for the fiscal year 1955, as now estimated. But we will continue 
determined efforts for economy to reduce that deficit during the 1955 
fiscal year. 

Furthermore, despite the loss of cash revenue from the tax reductions 
and revisions, the total cash transactions of the Government with the 
public are now estimated to show a small cash surplus for the fiscal 
year 1955. 

Budget totals, fiscal year IQ54, — The actual budget deficit for the fiscal 
year 1953 was 9.4 billion dollars. The budget deficit for the fiscal year 
1954, indicated in the 1954 budget document, was 9.9 billion dollars. 
The current estimates of the budget for that year show a budgetary deficit 
of 3.3 billion dollars. 

Total Government cash transactions with the public include the receipts 
and payments of the social security and other trust funds which are not 
considered part of the budget. In 1953 tne excess of cash payments to 
the public over receipts from the public was 5.3 billion dollars. The 1954 
budget document estimated an excess of cash payments of 6.6 billion 
dollars. Present estimates indicate an excess of cash payments over re- 

83 



CJ 14 Public Papers of the Presidents 

ceipts in 1954 of more than 200 million dollars, a reduction of 6.4 billion 
dollars in the cash deficit originally estimated. 

Budget totals, fiscal year IQ55- — The budget for the fiscal year 1955 is 
estimated to show a deficit of 2.9 billion dollars. 

„. , Deficits 

Fiscal year: (in billions) 

1952 $4. o 

1953 9.4 

1954: 

As estimated, January 9, 1953 9. 9 

Revised estimate 3. 3 

J 955 estimate 2.9 

The presently estimated deficit for the 1955 fiscal year is in sharp con- 
trast to a deficit forecast made by the Bureau of the Budget prior to trans- 
mission to the Congress of the 1954 budget document. This projection 
of the programs in existence and contemplated in the 1954 budget docu- 
ment, under the tax laws as they then existed, indicated a deficit for the 
1955 fiscal year about five times greater than the deficit now estimated. 
Budget receipts and expenditures for the fiscal year 1955 are estimated 
as follows: 

Receipts Expenditures 
(in billions) 

Under existing legislation $61.5 $64. 5 

Under proposed legislation 1. 2 1. 1 

Total 62. 7 65. 6 

Budget receipts allow for an estimated loss of revenue, totaling nearly 

5 billion dollars, from the tax reduction which took effect January 1 and 
from the cost of recommended tax revisions, insofar as these will apply to 
the 1955 fiscal year. On a full-year basis the revenue loss will approach 

6 billion dollars. 

The total cash transactions of the Government with the public show 
an estimated excess of receipts from the public over payments to the public 
of more than 1 00 million dollars in the fiscal year 1955. 

This record of progress toward a balanced budget is the result of a 
determined and continuous effort to bring the financial affairs of the 
Government under control. 

New obligational authority. — My recommendations for new appro- 
priations and other new obligational authority for the fiscal year 1955 
amount to 56.3 billion dollars, a further reduction from the amounts 
enacted during the last several years. 

84 



Dwight D. Eisenhower, IQ54 ^ 14 

New obligational 
«. , authority 

b iscal year : ( j n unions) 

1952 $91. 4 

1953 80. 2 

1954: 

As estimated, January 9, 1953 71.8 

Revised estimate 60. 7 

J 955> as recommended 56.3 

New obligational authority includes new appropriations, additions 
to borrowing authority, and certain adjustments to the authority of 
agencies to incur obligations. The above figures are on a comparable 
basis, reflecting certain adjustments in composition and definition made 
in this budget, partly to conform to congressional practices. Details 
are shown in the second part of this message. 

The accumulated unexpended balances of prior appropriations as of 
June 30, 1953, of 78.7 billion dollars, will be reduced to 66.5 billion 
dollars by June 30, 1954, and to 54.1 billion dollars by June 30, 1955, 
as now projected. 

The lower levels of new obligational authority and of accumulated 
unexpended balances for 1954 and 1955 lead to less expenditures in 
these and in future years. In the revision of the 1954 budget and in 
the 1955 budget the trend clearly is toward a balanced budget. 

Budget expenditures. — Total budget expenditures in the fiscal year 
1955 are estimated at 65.6 billion dollars. 

Fiscal vear- Expenditures 

riscai year. {in billions) 

1952 $65. 4 

1 953 74 . o 

1954: 

As estimated, January 9, 1953 77-9 

Revised estimate 70. 9 

1955 estimate 65.6 

Proposed expenditure programs for 1955 fall in three broad cate- 
gories: national security, major programs relatively uncontrollable under 
existing and proposed legislation, and all other Government programs. 

Expenditures for major national security programs — for the military 
functions of the Department of Defense, the mutual military program, 
atomic energy, and stockpiling of strategic materials — dominate the 
budget and are estimated at 44.9 billion dollars in the fiscal year 1955. 
This compares with a presently estimated 48.7 billion dollars in 1954 
and 50.3 billion dollars in 1953. These amounts are about the same 
percentage of total budget expenditures in each of the 3 years. 

51986—60 9 **5 



<J 14 Public Papers of the Presidents 

Closely related to these major security programs are other activities 
for national security included elsewhere in the budget. Our foreign 
economic assistance and information programs are particularly essential 
to deter aggression and strengthen the world forces for peace. 

Proposed reductions in major national security expenditures in 1955 
represent the largest single element of reduction from the current year's 
level of expenditures. I emphasize, however, that these savings result 
from revisions in programs, from shifts in emphasis, from better balanced 
procurement, and from improved management and operations. Our 
security is being strengthened — not weakened. Further, while expendi- 
tures for some programs in this category will be reduced, others will be 
increased. 

Of the four major national security programs, proposed 1955 expendi- 
tures for the Atomic Energy Commission and for the mutual military 
program will be at the highest levels since the initiation of the two 
programs. 

Within the Department of Defense the fiscal year 1955 expenditures 
on behalf of our airpower will be the largest since World War II. Allo- 
cations of expenditures for our continental defense program will be 
greater than in any previous year. 

Expenditures for stockpiling — the fourth of the principal programs 
in the major national security category — will be less than in the fiscal 
year 1954, as a result of approaching fulfillment of stockpile requirements 
in certain categories and of lower world market prices for materials still 
required for the stockpile. 

Budget expenditures for certain Government activities are, by law, 
relatively nondiscretionary, and depend largely on factors outside the 
annual budgetary process. While relatively few in number these repre- 
sent a large amount of dollars and the budget each year has to provide 
funds for them. For example, once the laws are placed on the statute 
books, grants to States for many purposes depend upon the extent to 
which States take advantage of Federal grant-in-aid programs; veterans' 
pensions depend upon the number of qualified veteran applicants; farm 
price supports depend upon the size of crops and the demand for sup- 
ported commodities; and interest payments on the national debt depend 
upon the amount of the debt and the rate of interest. 

In the fiscal year 1955 it is estimated that budget expenditures of 14.1 
billion dollars will be required to support these programs. This amount 

86 



Dwight D. Eisenhower, 1954 ^ 14 

is about the same as presently estimated for 1954 and almost 800 million 
dollars less than similar expenditures in the fiscal year 1 953. 

Budget expenditures for other Government activities, which contain 
more elements controllable through the budget process, are reduced an 
estimated 2.2 billion dollars below the fiscal year 1953 and 1.5 billion 
dollars below the present estimate for 1954. This is a reduction, over 
the two fiscal years, of about 25 percent in the cost of these numerous 
day-to-day operations of the Government. These activities cover, in 
number, a large majority of the items in the budget, although the amount 
involved is about one-tenth of total budget expenditures. 

Some substantial reductions in this category will result from a lessened 
postal deficit and management and program savings in many other de- 
partments. On the other hand, estimated expenditures for the Tennes- 
see Valley Authority, urban development and redevelopment, college 
housing loans, the National Science Foundation, fish and wildlife re- 
sources, the school lunch program, and several other programs of domestic 
importance will be the largest in our history. 

Budget receipts and taxes. — Budget receipts under existing and pro- 
posed legislation are estimated to be 62.7 billion dollars in the fiscal year 
1955. This is 4.9 billion dollars less than presently estimated 1954 re- 
ceipts; 1.9 billion dollars less than 1953, and 1.3 billion dollars more 
than 1952. 

Total Government expenditures and taxes are now so high that we 
must choose our path carefully between inadequate revenues on the one 
hand and repressive taxation on the other. I am anxious to have taxes 
reduced as fast as that can be done without building up inflationary 
deficits. It is the determined purpose of this administration to make 
further reductions in taxes as rapidly as justified by prospective revenues 
and reductions in expenditures. The objective will be to return to the 
people, to spend for themselves and in their own way, the largest possible 
share of the money that the Government has been spending for them. 

The start toward tax reductions is justified only because of success in 
reducing expenditures and improving the budgetary outlook. That out- 
look permits me to make some proposals for tax reform and reductions 
for millions of taxpayers at this time which represent much-needed im- 
provements in our tax system. These proposals are directed toward 
removing the most serious tax hardships and tax complications, and reduc- 
ing the tax barriers to continued economic growth. The proposals will 

87 



<][ 14 Public Papers of the Presidents 

encourage the initiative and investment which stimulate production and 
productivity and create bigger payrolls and more and better jobs. The 
details of these proposals are many and represent much cooperative work 
by the House Ways and Means Committee and its staff and the Treasury 
Department. In part II of my budget message, I list and describe 25 
important tax revisions. 

I do not believe that the budgetary situation will permit further reduc- 
tions of taxes at this time. Hence, I repeat my recommendations of last 
May that the reductions in the general corporate income tax be deferred 
for 1 year; that the excise tax rates, scheduled to be reduced on April 1, 
including those on liquor, tobacco, automobiles, and gasoline, be con- 
tinued at present rates; and that any adjustments in the other excise taxes 
be such as to maintain the total yield which we are now receiving from 
this source. 

Debt management. — A sound dollar is the cornerstone of financing 
policy under this administration. The problem of debt management 
is not only one of offering securities for cash or refunding which the market 
will take, but of appraising the economic situation and adapting financing 
plans to it, so that as far as possible debt management does not contribute 
to either inflation or deflation. 

This means close cooperation with the Federal Reserve System, whose 
duty it is under the law to administer the money supply, with these same 
objectives in view. 

Nearly three-quarters of the debt we inherited a year ago matures 
within less than 5 years or is redeemable at the holder's option. Too large 
a proportion is in the hands of banks. This is the result of financing over 
a period of years too largely by short term issues at artificially low interest 
rates maintained by Federal Reserve support. These policies contributed 
to cheapening the dollar. 

A start has been made in lengthening the maturities of the debt, as well 
as obtaining a wider distribution among individuals and other nonbank 
investors. In our 1953 debt operations, maturities were lengthened in 5 
out of 9 times. 

There is every reason to look forward with confidence to this country's 
ability to put its financial house in better order without serious disruption 
of credits or markets. The stream of the Nation's savings is huge, larger 
than ever before; the financial system is sound. With a reasonable assur- 

88 



Dwight D. Eisenhower, 1954 ^ 14 

ance of sound money of stable buying power there is no better investment 
than securities of the United States Government. 

The national debt is now close to the legal limit of 275 billion dollars. 
In view of the wide swings in receipts and expenditures and their unpre- 
dictability, it is not prudent to operate the huge business of the United 
States Government in such a straitjacket as the present debt limit. 

These difficulties will become worse as we move forward in the year. 
We shall be close to the debt limit and our cash balances will be danger- 
ously low on several occasions in the first half of the calendar year. 

In the second half of the calendar year, when tax receipts are season- 
ally low, there will be no way of operating within the present debt limit. 

For these reasons, I renew my request to the Congress to raise the 
debt limit. 

Proposed legislation. — Legislative proposals are reflected in separate 
messages or are included in the appropriate sections of part II of this 
message. 

A summary of the budgetary impact of the legislative program also is 
given in part II. 



In summary, I emphasize that this budget carries out the policy of this 
administration to move toward reduced taxes and reduced Government 
spending as rapidly as our national security and well-being will permit. 

By using necessity — rather than mere desirability — as the test for our 
expenditures, we will reduce the share of the national income which is 
spent by the Government. We are convinced that more progress and 
sounder progress will be made over the years as the largest possible share 
of our national income is left with individual citizens to make their own 
countless decisions as to what they will spend, what they will buy, and 
what they will save and invest. Government must play a vital role in 
maintaining economic growth and stability. But I believe that our devel- 
opment, since the early days of the Republic, has been based on the fact 
that we left a great share of our national income to be used by a provident 
people with a will to venture. Their actions have stimulated the Amer- 
ican genius for creative initiative and thus multiplied our productivity. 

This budget proposes that such progressive economic growth will be 
fostered by continuing emphasis on efficiency and economy in Govern- 
ment, reduced Government expenditures, reduced taxes, and a reduced 

89 



<| 14 Public Papers of the Presidents 

deficit. The reduced request for new obligational authority promises 
further that, barring unforeseen circumstances, the budgets I shall recom- 
mend in the future will be directed toward the same objectives. 

Dwight D. Eisenhower 

Part II 

To the Congress of the United States: 

This, the second part of my budget message, discusses in considerable 
detail my recommended program for the Government for the fiscal 
year 1955. 

I now present and describe my legislative proposals for taxes, and 
summarize my other legislative proposals, indicating their budgetary 
impact. This is followed by a presentation and discussion of the 
pertinent details of the budget. 

TAX PROPOSALS 

Our whole system of taxation needs revision and overhauling. It 
has grown haphazardly over many years. The tax system should be 
completely revised. 

Revision of the tax system is needed to make tax burdens fairer for 
millions of individual taxpayers. It is needed to restore normal incen- 
tives for sustained production and economic growth. The country's 
economy has continued to grow during recent years with artificial sup- 
port from recurring inflation. This is not a solid foundation for pros- 
perity. We must restore conditions which will permit traditional 
American initiative and production genius to push on to ever higher 
standards of living and employment. Among these conditions, a fair 
tax system with minimum restraints on small and growing businesses 
is especially important. 

I believe that this proposed tax revision is the next important step 
we should take in easing our tax burdens. After it is completed, further 
reductions in expenditures can be applied to our two objectives of 
balancing the budget and reducing tax rates. 

A year ago I asked the Secretary of the Treasury to undertake a 
complete review of the tax system and make recommendations for 
changes. The Committee on Ways and Means of the House of Rep- 
resentatives had already started constructive examination of the tax laws 

90 



Dwight D. Eisenhower, ig$4 C| 14 

with the same objectives. Extensive hearings were held by the committee 
during the late spring and summer. 

The proposed revisions are the result of a year's intensive work. The 
collaboration between congressional and Treasury staffs in the develop- 
ment of a tax revision bill has been very close. It may, I hope, provide 
a precedent for similar collaboration in other fields of legislation. 

I shall not list here all the detailed points developed for the revision 
of the tax laws. The following recommendations cover the major points. 

They will substantially reduce the more glaring inequities, thereby help- 
ing vast numbers of our people in their individual tax burdens. They will 
reduce the more serious restraints on production and economic growth. 
They will promote investment, which provides new and better methods of 
production and creates additional payrolls and more jobs. 

The revisions will also make the law simpler and surer, with benefits to 
both taxpayers and the Government. They will in many ways prevent 
abuses by which some taxpayers now avoid their rightful share of tax 
burdens by taking unfair advantage of technicalities. 

1. Children earning over 600 dollars. — At present, parents cannot 
claim as a dependent any child who earns over 600 dollars a year. This 
discourages children in school or college from earning as much as they 
can to help in their support. I recommend that a parent should be per- 
mitted to continue to claim a child as a dependent regardless of the child's 
earnings if he is under 18 or away from home at school, as long as he is 
in fact still supported by the parent. Such dependents should, of course, 
continue to pay their own income tax on earnings above 600 dollars. 

2. Heads of families. — At present, a widow or widower with depend- 
ent children is denied the full benefit of income-splitting available to mar- 
ried couples. It seems unfair to tax the income of a surviving parent with 
dependent children at higher rates than were applied to the family income 
before the death of one of the partners in a marriage. I recommend that 
widows and widowers with dependent children be allowed to split their 
income as is now done by married couples. 

This same tax treatment should be authorized for single people sup- 
porting dependent parents. Furthermore, the present requirement that 
dependent parents must live with their children for the children to qualify 
for this tax treatment should be removed. It is often best for elderly 
people to be able to live in their own homes, and the tax laws should not 
put a penalty on family arrangements of this sort. 

9i 



<|[ 14 Public Papers of the Presidents 

3. Foster children as dependents. — At present, foster children and 
children in process of adoption may not be claimed as dependents. I 
recommend that such children be allowed as dependents. 

4. Expenses of child care. — Some tax allowance can properly be given 
for actual costs of providing care for the small children of widows or 
widowers who have to work outside the home. The same tax privilege 
should be given to working mothers who, because their husbands are in- 
capacitated, provide the principal support of their families. 

5. Medical expenses. — The present tax allowances for unusual med- 
ical expenses are too limited to cover the many tragic emergencies which 
occur in too many families. I recommend that a tax allowance be given 
for medical expenses in excess of 3 percent of income instead of 5 percent 
as at present. I recommend further that the present ceiling of 1,250 
dollars for a single person with a maximum ceiling of 5,000 dollars for 
a family should be doubled so that the maximum for a family will be 
10,000 dollars. However, to avoid abuses in medical deductions, I rec- 
ommend that the definition of medical expenses be tightened to exclude 
both ordinary household supplies and certain indirect travel expenses. 

6. Medical insurance and sick benefits for employees. — Insurance and 
other plans adopted by employers to protect their employees against the 
risks of sickness should be encouraged by removing the present uncer- 
tainties in the tax law. It should be made clear that the employer's share 
of the costs of providing such protection on a group basis will not be 
treated as income on which the employee is liable for tax. This principle 
should be applied to medical and hospital insurance as well as to a full 
or partial continuation of earnings during a sickness. 

There should be no tax discrimination between plans insured with an 
outside insurance company and those financed directly by the employer. 
At present, payments received by a person while sick are entirely non- 
taxable if made under an insured plan. This makes it possible for a 
person subject to high tax rates to have a much larger net income while 
on sick leave than while at work. To prevent abuses, I recommend that 
a limit of 100 dollars a week be placed on tax-free benefits, but this 
exemption should be extended only to plans meeting certain general 
standards. 

7. Pension and profit-sharing plans for employees. — The conditions 
for qualification for special tax treatment of employers' pension plans 



92 



Dwight D. Eisenhower, IQ54 <][ 14 

are too involved. Such plans are desirable. I recommend that the rules 
be simplified and that greater discretion be given in establishing plans 
for different groups of employees, so long as there is no discrimination 
in favor of key executives or stockholders. 

Under present law, the value of a future pension to a surviving widow 
or child of an employee is included in the husband's taxable estate, even 
though the survivors may not live to receive the full benefits and there 
may be no cash available to pay the tax. I recommend that such value 
should not be included in an estate but that the survivors continue to pay 
tax on the pension in the same manner that it was taxed to the person 
first receiving it. 

At the same time, to avoid unfair competition with ordinary taxpay- 
ing businesses, I recommend that pension trusts be restricted in the same 
manner as tax-exempt foundations. They should also be subject to 
rules in regard to percentage distribution of their assets comparable to 
those applying to regulated investment companies. 

8. Taxation of annuities. — Under the present tax law, a person buying 
an annuity is taxed on a relatively large part of each payment until his 
cost is fully recovered, at which time the full amount becomes taxable. 
The tax rule is so strict that often a person is not likely to get his capital 
back tax free unless he lives beyond his life expectancy. I recommend 
that the tax treatment of annuities be determined on the basis of the life 
expectancy of the person receiving it. This will permit the hundreds of 
thousands of people who buy annuities to recover their capital free of tax 
over their life expectancies and will avoid any change in the tax status 
of an annuity during a person's lifetime. 

9. Double taxation of dividends. — At present, business income is taxed 
to both the corporation as it is earned and to the millions of stockholders 
as it is paid out in dividends. This double taxation is bad from two 
standpoints. It is unfair and it discourages investment. I recommend 
that a start be made in the removal of this double taxation by allowing 
stockholders a credit against their own income taxes as a partial offset 
for the corporate tax previously paid. This will promote investment 
which in turn means business expansion and more production and jobs. 

Specifically, I recommend that the credit be allowed on an increasing 
scale over the next 3 years. For this year, I recommend that a credit 
of 5 percent be allowed; for 1955, a credit of 10 percent; and, in 1956 



51986—60 10 



93 



<][ 1 4. Public Papers of the Presidents 

and later years, 15 percent. To avoid shifts in the payment dates of 
corporation dividends, these credits should apply to dividends received 
after July 3 1 of each year. To give the full benefit immediately to small 
stockholders, I recommend that the first 50 dollars of dividends be com- 
pletely exempted from tax in 1954 and that the first 100 dollars be 
exempted in 1955 and later years. 

10. Estimated returns. — The burden on those required to file estimated 
tax returns should be reduced by increasing the number of optional 
ways in which an individual can estimate his tax without being subject 
to penalty for an underestimate. I recommend also that the penalties 
resulting from underestimates be simplified by being stated as a 6-percent 
interest charge on deficiencies. 

11. Filing date, — To reduce the burdens of preparing and filing 
returns in the early months of the year, I recommend that the March 15 
filing date for individuals be changed to April 15. 

In the taxation of business the same objectives of fairness, simplicity, 
and reduction of tax barriers to production and normal economic growth 
are important. The present tax law should be revised on the basis of 
these standards. 

Particular attention should be given in the revision of the law to the 
problems of small and growing business concerns. I cannot emphasize 
too strongly the social and economic importance of an environment 
which will encourage the formation, growth, and continued independent 
existence of new companies. 

12. Depreciation. — A liberalization of the tax treatment of deprecia- 
tion would have far-reaching effects on all business and be especially 
helpful in the expansion of small business whether conducted as individ- 
ual proprietorships, partnerships, or corporations. At present, buildings, 
equipment, and machinery are usually written off uniformly over their 
estimated useful lives. The deductions allowed, especially in the early 
years, are often below the actual depreciation. This discourages long- 
range investment on which the risks cannot be clearly foreseen. It 
discourages the early replacement of old equipment with new and im- 
proved equipment. And it makes it more difficult to secure financing 
for capital investment, particularly for small business organizations. 

I recommend that the tax treatment of depreciation be substantially 
changed to reduce these restrictions on new investment, which provides 



94 



Dwight D. Eisenhower, 1954 <][ 14 

a basis for economic growth, increased production, and improved stand- 
ards of living. It will help the manufacturer in buying new machinery 
and the storekeeper in expanding and modernizing his establishment. 
It will help the farmer get new equipment. All of this means many 
more jobs. 

Specifically, I recommend that business be allowed more freedom in 
using straight-line depreciation and in selecting other methods of depreci- 
ation. Larger depreciation charges should be allowed in the early years 
of life of property by the use of the declining-balance method of depreci- 
ation at rates double those permitted under the straight-line method. 
Other methods which give larger depreciation in early years should be 
accepted, so long as they do not produce deductions which exceed those 
available under the declining-balance method. 

The new methods of depreciation should be allowed for all invest- 
ments in buildings, equipment, and machinery made after January i, 
1954. This would include farm buildings and equipment and new 
construction of commercial and industrial buildings and rental housing. 

Faster depreciation, it should be noted, will merely shift the tax de- 
ductions from later to earlier years. It will not increase total deductions. 
The change should, in fact, increase Government revenues over the years 
because of the stimulation which it will give to enterprise and expansion. 

In addition to the tax treatment of depreciation, which is important 
for all business, there are other features of the tax law which are of special 
importance to small business. 

13. Research and development expenses. — At present, companies are 
often not permitted to deduct currently for research or development ex- 
penses. This rule is especially burdensome to small concerns because 
large companies with established research laboratories can usually get 
immediate deductions. I recommend that all companies be given an 
option to capitalize or to write off currently their expenses arising from 
research and development work. Our tradition of initiative and rapid 
technical improvements must not be hampered by adverse tax rules. 

14. Accumulation of earnings. — At present, the penalty tax on exces- 
sive accumulations of corporate earnings operates to discourage the growth 
of small companies which are peculiarly dependent on retained earnings 
for expansion. The tax in some form is necessary to prevent avoidance of 
individual taxes by stockholders, but I recommend that the law be changed 



95 



<][ 14 Public Papers of the Presidents 

to make the Government assume the burden of proof that a retention of 
earnings is unreasonable. 

15. Taxation of partnerships. — The tax law applicable to partner- 
ships is complex and uncertain. I recommend that it be simplified and 
made definite. It should be possible to form partnerships and make 
changes in them without undue tax complications. 

1 6. Optional tax treatment for certain corporations and partnerships. — 
Small businesses should be able to operate under whatever form of organi- 
zation is desirable for their particular circumstances, without incurring 
unnecessary tax penalties. To secure this result, I recommend that corpo- 
rations with a small number of active stockholders be given the option to 
be taxed as partnerships and that certain partnerships be given the option 
to be taxed as corporations. 

17. Corporate reorganizations. — The tax law applicable to reorganiza- 
tions and recapitalizations of corporations is also complex and uncertain. 
This part of the law should be simplified and made sufficiently definite to 
permit people to know in advance the tax consequences of their actions. 

The owners of small corporations frequently find it necessary to re- 
arrange their interests in a corporation in anticipation of estate taxes, to 
secure new capital, or to make stock available for a new management 
group. I recommend that the tax law permit tax-free rearrangements of 
stockholders' interests in corporations, so long as no corporate earnings 
are withdrawn. Such changes will remove some of the tax pressures 
which force the sale of independent companies to larger corporations. At 
the same time, the law should be tightened to prevent abuses by which 
corporate earnings are withdrawn through the issuance and redemption of 
corporate securities. It should also be amended to avoid abuses through 
the purchase of corporations to acquire their rights to loss carryovers. 

18. Loss carryback. — At present, losses may be carried back and offset 
against prior earnings for 1 year and carried forward to be offset against 
future earnings for 5 years. I recommend that the carryback be extended 
to 2 years. This will benefit established companies which become dis- 
tressed. The 5-year carryforward should be continued to permit new 
businesses to offset their early losses against later profits. 

19. Soil conservation expenses. — At present, only limited and uncer- 
tain tax deductions are allowed for soil conservation expenses on farms. 
I recommend that such deductions be allowed up to 25 percent of the 
farmer's gross income. 

96 



Dwight D. Eisenhower, ig$4 <J 14 

20. Accounting definitions. — Tax accounting should be brought more 
nearly in line with accepted business accounting by allowing prepaid 
income to be taxed as it is earned rather than as it is received, and by 
allowing reserves to be established for known future expenses. 

2 1 . Multiple surtax exemptions, consolidated returns, and intercorpo- 
rate dividends. — I recommend that the law be tightened to remove abuses 
from the use of multiple corporations in a single enterprise. I also rec- 
ommend that the penalty tax on consolidated returns and intercorporate 
dividends be removed over a 3-year period. 

22. Business income from foreign sources. — I recommend that the 
taxation of income from foreign business investments be modified in 
several respects. The investment climate and business environment 
abroad are much more important than our own tax laws in influencing 
the international flow of capital and business. Nonetheless, our capital 
and management know-how can be helpful in furthering economic devel- 
opment in other countries, and is desired by many of them. Our tax 
laws should contain no penalties against United States investment abroad, 
and within reasonable limits should encourage private investment which 
should supplant Government economic aid. 

Specifically, I recommend the following new provisions in our taxa- 
tion of business income from foreign sources: 

(a) Business income from foreign subsidiaries or from segregated 
foreign branches which operate and elect to be taxed as subsidiaries 
should be taxed at a rate 14 percentage points lower than the regular 
corporate rate. This lower rate of tax should apply only to earnings 
after January 1, 1954. 

(b) The present definition of foreign taxes which may be credited 
against the United States income tax should be broadened to include 
any tax other than an income tax which is the principal form of taxation 
on business in a country, except turnover, general sales or excise taxes, 
and social security taxes. This country, by its tax laws, should not bring 
indirect pressure on other countries to adapt their tax systems and rates 
to ours. 

(c) The overall limitation on foreign tax credits should be removed. 
This limitation discourages companies operating profitably in one foreign 
country from starting business in another foreign country where opera- 
tions at a loss may be expected in the first few years. 

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<J 14 Public Papers of the Presidents 

(d) Regulated investment companies concentrating on foreign invest- 
ments should be permitted to pass on to their stockholders the credit for 
foreign taxes which would be available on direct individual investments. 

23. Payment dates of corporation income tax. — Over the past several 
years, corporation income tax payments have been gradually shifted 
forward into the first two of the regular quarterly dates. By 1955, the 
entire tax will be due in two equal installments in March and June. 

The irregularity of tax receipts increases the problems in managing 
the public debt and is an unsettling influence in the money markets. The 
irregularity of tax payments also may make it harder for corporations 
to manage their own financing. 

I recommend that, beginning in the fall of 1955, a start be made in 
smoothing out corporation income tax payments by requiring advance 
payments in September and December before the end of the taxable 
year. Each of these payments should be made at 5 percent of the amount 
due for the entire year in 1955, rising to 25 percent each in 1959 and 
later years. 

These advance payments will require estimates of income for the year 
somewhat comparable to those now required of individuals. Though esti- 
mates of profits are difficult to make accurately, no payments will be 
required before the middle of the ninth month of a business year. 

24. Administrative provisions. — The administrative features of the tax 
laws are unnecessarily complex. Different provisions have been adopted 
over the years to deal with particular problems, with little regard to con- 
sistency. Specifically, I recommend that the parts of the law covering 
assessments, collections, interest and penalties, the statute of limitations, 
and other administrative provisions be simplified and brought together in 
one place. This will result in savings to both taxpayers and the 
Government. 

An effective and fair administration of the tax laws is vital to every 
individual in the country. The Internal Revenue Service has been re- 
vitalized during the past year and is being organized and managed on a 
basis that will assure fair and equal treatment to all taxpayers, maximum 
realization of taxes from revenue laws, and the contribution by each 
taxpayer of the share of the cost of Government that Congress intends 
that he should make. 

The regulations and administration of the tax laws are being tightened 
to prevent abuses by which a small minority of taxpayers avoid their fair 

98 



Dwight D. Eisenhower, ig$4 <J 14 

share of taxes by misuse of expense accounts and other improper practices. 

25. General simplification of tax laws and other revisions. — The revi- 
sion of the tax laws should be comprehensive. Many unnecessary compli- 
cations have developed over the years. The entire Internal Revenue 
Code needs rewriting and reorganization. 

Jointly, the Treasury Department and the staff of the congressional 
committees have developed many recommendations for changes other 
than those which I have described here. Some of these relate to the 
estate and gift tax, and the administrative provisions of the excise taxes. 

The review of the present tax system in the Treasury Department has 
not yet led to final conclusions in many other situations that require 
further study before any recommendations for change can be properly 
made. These subjects include the tax treatment of capital gains and 
losses, the special problems of the oil and mining industries, the tax treat- 
ment of cooperatives and organizations which are wholly or partially tax 
exempt, as well as the provision of retirement income for people not 
covered by pension plans. 

The tax reforms and revisions covered by the foregoing 25 recommenda- 
tions make the income tax system fairer to individuals and less burden- 
some on production and continued economic growth. After their adoption, 
further reductions in Government expenditures will make possible addi- 
tional reductions in the deficit and tax rates. 

I do not believe that the budgetary situation justifies any tax reduc- 
tions beyond those involved in the proposed tax revision and in the tax 
changes which occurred on January 1. Accordingly, I repeat my recom- 
mendation of last May that the reduction in the general corporate 
income tax rate be deferred for another year. 

Excise taxes provide a relatively small proportion of our total tax 
revenues. In the fiscal year 1955, they are estimated to produce 10 
billion dollars at existing rates as compared with 20 billion dollars from 
corporation income taxation and 30 billion dollars from individual 
income taxes. Of this 10 billion dollars, more than half comes from 
the excise taxes on liquor, tobacco, and gasoline. 

Because of the present need for revenue, I recommend that the excise 
taxes scheduled to be reduced on April 1, including those on liquor, 
tobacco, automobiles, and gasoline, be continued at present rates; and 
that any adjustments in the other excise taxes be such as to maintain 
the total yield which we are now receiving from this source. 

99 



($ 14 Public Papers of the Presidents 

SUMMARY OF OTHER LEGISLATIVE PROPOSALS 

The administration has developed a dynamic, progressive, and at the 
same time wholly practical legislative program. Its major outlines are 
set forth in the State of the Union Message, which I delivered to the 
Congress on January 7. Since that date, I have forwarded to the 
Congress the details of my recommendations with respect to the steps 
which I believe should be taken : ( 1 ) To modernize and make effective 
our agricultural laws (January 11); (2) to bring up to date and to 
improve the Labor-Management Relations Act of 1947 (January 11); 
( 3 ) to extend and make more equitable the old-age and survivors insur- 
ance system (January 14) ; (4) to chart a new course in Federal coopera- 
tion and support for putting up-to-date medical and hospital care at 
the disposal of our citizens (January 18). On January 25 I shall 
present a program which will, for the first time, bring together into a 
coordinated and forward-looking set of policies the housing and com- 
munity development programs of the Federal Government. Within a 
few days thereafter, I expect to make certain recommendations with 
respect to amendments to the Atomic Energy Act. These are discussed 
in more detail in subsequent sections of this message. 

These measures, together with the legislative proposals which will be 
presented in the course of the next several months with respect to foreign 
assistance and trade, are the foundation stones for the legislative program 
of this administration. All of them call for extensions of existing legisla- 
tion or the enactment of new legislation. All of them are necessary. 
They will help us to protect the freedom of our people, to maintain a 
strong and growing economy, and to concern ourselves with the human 
problems of the individual citizen. 

Keyed to these foundation stones are the other individual measures 
which I have already recommended or which I shall recommend as soon 
as the necessary information upon which to base recommendations can 
be prepared. To some extent these other measures are basically improve- 
ments in program and are less precisely definable in terms of new costs 
attributed to them. 



100 



Dwight D. Eisenhower, IQ54 

Summary of Other Legislative Proposals 

1955 BUDGET 

[Fiscal years. In millions] 



Function and program 

EXTENSION OF PRESENT MAJOR PROGRAMS 

National security: 

Military public works, Department of Defense 

Mutual military program 

International affairs and finance: 

Mutual economic and technical cooperation 

Surplus agricultural commodities disposal 

Contributions to voluntary international programs 

Agriculture and agricultural resources: Increase in borrow- 
ing authority of the Commodity Credit Corporation .... 
Transportation and communication: 

Federal-aid highway program 

Forest highways 

Subtotal, extension of present major programs 

NEW LEGISLATIVE PROGRAM 

Social security, welfare, and health: 

Grants to States for public assistance 

Expansion of grants for hospital construction 

Program to stimulate wider coverage and greater benefits 
from private health insurance 

Expansion of vocational rehabilitation services for the dis- 
abled 

Creation of a National Commission for Health Improve- 
ment 

Housing and community development: Advance planning 

of local public works 

Education and general research: 

Program to strengthen the Office of Education 

National Conference on Education 

Agriculture and agricultural resources: Cooperation with 

State and local agencies on watershed protection 

Natural resources: 

Aid for non-Federal development of water resources 

Federal projects 

Transportation and communication: 

St. Lawrence Seaway 

Proposed postal rate increases (increased revenue) 

Labor and manpower: Expansion of unemployment compen- 
sation coverage: Administrative costs 

1 Recommended for the fiscal year 1954. 

2 Includes 1 .5 million dollars in the fiscal year 1 954. 

101 



<& H 



• 954- 1 955 



Recommended 




new 

obligational 

authority 


Estimated 
expenditures 


$1, 108.0 


$ 1 00 . 


2, 5OO.O 


700.0 


875.O 


300.0 


300.0 

!35-° 




70.0 


1,750.0 

575 -o 
22.5 










7,265.5 


1, 170.0 


108.0 


108.0 


62.6 


5-6 


26.2 


I . I 


8.8 


7.8 


o-3 


0.3 


1 10. 


3.0 


0.3 

1 2.0 


0.3 

2 1.8 



30 

10. o 
o-5 

105.0 
-240.0 



2.4 

10. o 
0.4 

5-8 

— 24O.O 



<][ 14 Public Papers of the Presidents 

Summary of Other Legislative Proposals — Continued 

1955 budget — Continued 

[Fiscal years. In millions] 

1 954-1 955 

Recommended 

new 
obligational Estimated 

Function and program authority expenditures 

new legislative program — continued 
General government: 
Unemployment compensation for Federal civilian em- 
ployees $25 . o $25 . o 

Increase in Federal payment to the District of Columbia . . 1 o . o 1 o . o 

District of Columbia public works program 7.0 5.0 

Subtotal, new legislative program: 

1954 12.0 1.5 

1955 148.8 -33 .0 

Total legislative proposals: 

Fiscal year 1 954 12.0 1.5 

Fiscal year 1955 7>4H-3 x > *37 ° 

Proposed Legislation Affecting Trust Funds 

1955 budget 
[In millions] 
Function and program 

Social security, welfare, and health: J 955 

Expansion and improvement of old-age and survivors insurance: estimated 

Additional receipts $1 00.0 

Additional disbursements 408.0 

Net accumulation in reserve —308.0 

Labor and manpower: 
Extension of coverage of unemployment insurance: 

Additional deposits by States l 45-° 

Additional withdrawals by States 60.0 

Net accumulation in reserve 85.0 

To the extent that it has been possible to assess with reasonable accuracy 
the cost of major measures in the legislative program, estimates have been 
included in this budget. These estimates are summarized above. One 
recommendation, the proposed increase in postal rates, would add to Fed- 
eral revenues. Other minor measures, in themselves too small to be iden- 

102 



Dwight D. Eisenhower, ig^4 <][ 14 

tified in summary tables, are discussed and recommended in respective 
summary sections and chapters of this budget. Their total cost is small 
and has been adequately provided for in the reserve for contingencies. 

DISCUSSION OF THE BUDGET 

I now present and describe pertinent details of the budget. The figures 
shown in the budget are careful estimates based on present and foreseeable 
conditions. Changes in the budget can result from congressional action. 
Still others can result from economic factors which change the price of 
goods purchased by the Government or the incomes received and taxes 
paid by the citizens of the Nation. Changes in international and domestic 
conditions could alter this budget before the end of the fiscal year 1955. 

The presentation of the figures in the budget for the fiscal year 1955 
reflects two significant clarifications. 

First, the appropriation to the railroad retirement trust fund equal to 
the taxes under the Railroad Retirement Tax Act has been excluded from 
the totals of budget expenditures and deducted from the total of budget 
receipts. This does not affect the budget surplus or deficit, and has been 
applied to the figures for all the years shown in this budget so that they 
are on a comparable basis. 

This change properly presents an item which has previously overstated 
both budget receipts and expenditures in an equal amount. The collection 
of employment taxes on the railroad industry is in effect collections for a 
trust fund and not for Government operations. Their transfer to the 
trust fund should be made directly as a deduction from receipts and not 
shown as a budget expenditure. 

The second significant clarifying change in presentation relates to the 
fact that the budget expenditure totals in the past have understated the 
scope of the Government's activities in that they included only the net 
basis of the spending by a number of enterprises which are engaged in 
business-type operations with the public. In the course of carrying out 
their functions, each of these public enterprises receives money from its 
customers or clients — interest and collections on loans or payments for 
goods delivered or services rendered. By law, most public enterprises 
may use their receipts and collections to carry on the operations for which 
they were created. These receipts and collections from the public in the 
fiscal year 1955 total 1 1 billion dollars. 



103 



<J 14 Public Papers of the Presidents 

The public enterprise activities are carried on through "revolving 
funds." Some of the enterprises are organized as Government corpora- 
tions; others, such as the Post Office, are unincorporated. 

In the summary tables of previous budgets, the receipts of such funds 
were subtracted from expenditures and only the difference was reported 
as a budget expenditure. In those cases where receipts exceeded expendi- 
tures for the year a negative figure was included in the summary expendi- 
ture tables. While the use of either the gross figures or the net figures 
produces an identical effect on the budget surplus or deficit, the former 
method of presenting only net figures in the summary tables did not reveal 
the full scope of the Government's financial transactions. 

When Government agencies engaged in lending activities use their 
collections on old loans to make new loans, the net expenditure figure 
fails to disclose the volume of new lending and the new risks involved. 

In this budget, the summary tables present the expenditures of the 
public enterprise funds on both a gross and net basis. The difference re- 
veals the magnitude of receipts from the public in the "revolving funds." 

BUDGET RECEIPTS 

The estimates of budget receipts for the fiscal year 1955 in the following 
table are in accordance with my recommendations for taxes, and are based 
upon the continuation of business conditions, personal income, and cor- 
poration profits at substantially the present high levels. 

Budget Receipts 

[Fiscal years. In millions] 

1953 1954 1955 

Source actual estimated estimated 

Individual income taxes: 

Existing legislation l $32, 478 $33, 433 $30, 908 

Proposed legislation ~5^5 

Corporation income taxes: 

Existing legislation 21, 595 22, 809 19, 694 

Proposed legislation 570 

Excise taxes: 

Existing legislation 9, 943 10, 038 9, 221 

Proposed legislation 189 1,018 

Employment taxes: 
Federal Insurance Contributions Act: 

Existing legislation l 4, 086 4, 600 5, 369 

Proposed legislation 1 00 

1 Estimated. 

104 



Dwight D. Eisenhower, ig54 



f 14 



Budget Receipts — Continued 
[Fiscal years. In millions] 



Source 
Employment taxes — Continued 
Federal Unemployment Tax Act: 

Existing legislation 

Proposed legislation 

Railroad Retirement Tax Act 

Railroad Unemployment Insurance Act. 

Estate and gift taxes 

Customs 

Internal revenue not otherwise classified . . 
Miscellaneous receipts 



1953 

actual 

$276 

626 
10 


1954, 
estimated 

$290 
640 

955 
590 

2,3*3 


J955 
estimated 

$292 

16 

640 


891 
613 

49 
1,827 


955 
59o 


2,454 



Total receipts 

Deduct: 
Appropriation to Federal old-age and survivors 
insurance trust fund: 

Existing legislation 

Proposed legislation 

Appropriation to railroad retirement trust fund . . . 
Refunds of receipts: 

Existing legislation 

Proposed legislation 

Adjustment to daily Treasury statement basis 

Budget receipts 



72, 394 

4, 086 

625 

3, 120 

+ 30 



75, 857 

4, 600 

640 

2,988 



71, 242 



5,369 
100 
640 

2,644 
-153 



6 4> 593 6 7, 62 9 62, 642 



Budget receipts exclude refunds of overpayments made to taxpayers 
and also exclude the employment taxes which are appropriated and 
transferred to the old-age and survivors insurance trust fund and to the 
railroad retirement trust fund. Since these items are also excluded from 
budget expenditures, the surplus or deficit is not affected. 

APPROPRIATIONS AND OTHER BUDGET AUTHORIZATIONS 

New obligational authority represents the total of all new authoriza- 
tions enacted by the Congress permitting Government agencies to incur 
financial obligations. In addition to new appropriations, it includes 
mainly authorizations to enter into contracts prior to the enactment of 
appropriations, and authorizations to make expenditures from borrowed 
money. 



105 



1$ 14 Public Papers of the Presidents 

New Obligational Authority by Major Program 

[Fiscal years. In billions] 

1954 estimated 

Budget 
x 953 docu- Current ig^recom- 

Mqjor program actual merit 1 estimate mended 

National security $57-2 $49.1 $39-3 $34-9 

Veterans' services and benefits 4.1 4.6 4.2 4.0 

International affairs and finance 2.2 1.9 1.2 1.5 

Social security, welfare, and health 1.9 1.9 1.9 1.8 

Housing and community development ... 1.5 .7 .6 .2 

Education and general research .3 .2 .2 .2 

Agriculture and agricultural resources ... 1.3 1.5 2.3 2.8 

Natural resources 1.4 1.4 1.0 1.0 

Transportation and communication 1.9 2.1 1.8 1.5 

Finance, commerce, and industry .1 .1 .1 ( 2 ) 

Labor and manpower .3 .3 .3 .3 

General government 1.4 1.5 1.1 1.0 

Interest 6.6 6.4 6.6 6.9 

Reserve for contingencies .1 .1 .2 

Total 80.2 71.8 60.7 56.3 

1 Adjusted for purposes of comparability. 

2 Less than 50 million dollars. 

In prior years, new obligational authority has included all reappropri- 
ations. In conformity with congressional procedures, this budget does 
not include as new obligational authority reappropriations for two large 
programs, the mutual security program, and the construction program 
of the Atomic Energy Commission. These are authorized annually but 
are in effect continuing programs. The resulting reduction in reported 
new obligational authority is offset by a corresponding increase in the 
unspent balances of appropriations brought forward from one fiscal year 
to the next. New obligational authority in this budget also excludes the 
appropriation equivalent to taxes for the railroad retirement account, 
which has been discussed elsewhere. These changes are set forth in the 
following table : 



106 



Dwight D. Eisenhower, IQ54 



q 14 



New Obligational Authority — Reconciliation 
[Fiscal years. In millions] 

1954 estimated 



1953 
Description actual 
New obligational authority, midyear re- 
view basis $81, 373 

Deduct reappropriations for: 

Mutual security program 447 

Atomic Energy Commission — con- 
struction 65 

Appropriations for railroad retire- 
ment taxes 625 

New obligational authority, present basis . 80, 236 
Deduct authorizations other than cur- 
rent appropriations 7, 879 



Budget 
document 



$72, 883 

404 
660 



Current 
$63, 981 

1.944 
679 
640 



1955 f 
estimated 



71,819 60,718 $56,283 
7, 504 8, 889 9, 260 



Current appropriations 72,357 64,315 J 51, 829 47,023 

1 Includes supplemental appropriations estimated in this budget at about 0.5 billion 
dollars; hence appropriations actually enacted are 51.3 billion dollars. 

The Congress enacted increasing amounts of new obligational authority 
after the beginning of hostilities in Korea in June 1950. This new 
obligational authority was much greater than the amount of budget 
expenditures for each year and also greater than budget receipts in 
each year. Thus it represented commitments for future spending in 
excess of the revenues then being provided by the tax system. 

The estimate of total appropriations and other authorizations for the 
fiscal year 1954 and, likewise, the total of my recommendations for new 
obligational authority for the fiscal year 1955 are less than estimated 
budget expenditures and also less than estimated budget receipts for 
the corresponding years. This is in direct contrast to the substantial 
excess of appropriations over revenues in recent prior years. It means 
we now are reducing the large amount of outstanding unfinanced com- 
mitments incurred under past appropriations and are making possible 
lower future levels of expenditures. 

The major national security programs still require the largest part 
of our new budgetary authorizations. Of the total new obligational 
authority recommended for the fiscal year 1955, 34.9 billion dollars, or 
about 62 percent, is for the military functions of the Department of 
Defense, the atomic energy program, the mutual military program with 



107 



C| 14 Public Papers of the Presidents 

our allied nations of the free world, and the stockpiling of strategic and 
critical materials. 

In the detailed review which the appropriations committees and the 
Congress make of the operations of each agency and its budget proposals 
before enacting new obligational authority it is necessary to have the 
budget proposals set forth separately for each agency. Part II of the 
1955 budget document is organized on such a basis. It presents sum- 
mary and detailed information on my recommended appropriations 
for each agency. The individual appropriations are supported by sched- 
ules which reconcile the amount of the appropriation recommended with 
the obligations which are expected to be incurred. The obligation 
figures are reconciled with the estimated expenditures. The activities 
carried on within the appropriations and the workloads involved are 
also described for individual appropriations. 

This grouping of the budget proposals by agencies, as contrasted with 
grouping by program or function principally employed in the budget 
summaries, is not only required for congressional action but is also the 
essential presentation for those of our citizens who are interested in 
following the progress of the budget proposals in the Congress. 

The following table is derived from part II of the 1955 budget docu- 
ment. It shows that the new obligational authority I am recommending 
for the fiscal year 1955 is 56.3 billion dollars. This is 35.1 billion 
dollars less than the highest post-Korean amount of 91.4 billion dollars 
enacted for the fiscal year 1952. It is 15.5 billion dollars less than the 
amount recommended to Congress for the fiscal year 1954, in the budget 
document dated January 9, 1953, and 4.4 billion dollars less than the 
currently revised estimate for the fiscal year 1954. 

UNEXPENDED BALANCES 

In some cases, a considerable time period elapses between the enactment 
of an appropriation and the expenditure of all the Federal funds appro- 
priated. For example, several years may elapse between the time a con- 
tract is negotiated pursuant to an appropriation for aircraft or other 
heavy military equipment and the time all the equipment ordered has 
been delivered and paid for by the Government. Thus many of the 
expenditures being made by the Government in the fiscal years 1954 and 
1955 result from obligational authority enacted and from contracts nego- 
tiated in prior years. 

108 



Dwight D. Eisenhower, ig54 f$ 14 

New Obligational Authority by Agency 

[Fiscal years. In millions] 

1954 estimated 

Budget Current 1955 recom- 

Agency J 953 actual document 1 estimate mended 

Legislative branch $76 $85 $83 $67 

The Judiciary 28 29 29 30 

Executive Office of the President 9 8 9 9 

Funds appropriated to the President. ... 1, 908 1, 532 932 1, 185 
Independent offices: 

Atomic Energy Commission 4, 079 1, 593 1, 042 1, 366 

Veterans Administration 4, 191 4, 554 4, 273 3, 893 

Other i, 050 1, 134 665 592 

General Services Administration 317 395 163 155 

Housing and Home Finance Agency. ... 1, 357 506 454 85 

Department of Agriculture 1, 510 1, 659 2, 499 2, 935 

Department of Commerce 911 1, 078 982 973 

Department of Defense: 

Military functions 4^,776 4 I ? 3 I 9 34,495 3°> 993 

Mutual military program 4, 236 6, 1 19 3, 800 2, 500 

Civil functions 598 688 505 580 

Department of Health, Education, and 

Welfare 1, 934 1, 773 1, 863 1, 806 

Department of the Interior 590 664 499 488 

Department of Justice 173 187 1 79 1 78 

Department of Labor 295 332 299 388 

Post Office Department (general fund) . . 660 669 439 89 

Department of State 241 332 142 269 

Treasury Department 7, 279 7, 101 7, 250 7, 471 

District of Columbia (general fund) 18 12 16 31 

Reserve for contingencies 50 100 200 

Total 80,236 71,819 60,718 56,283 

1 Adjusted for purposes of comparability except for reorganization transfers. 

During the fiscal year 1955, it is estimated that 45 percent of total 
budget expenditures will be from obligations incurred under appropria- 
tions and other authorizations enacted in years before 1955, and 55 
percent will be from the new obligational authority I am recommending 
for 1955. 

The reductions in appropriations that were made last year and the 
further reductions I am recommending for the fiscal year 1955 decrease 
the accumulated backlog of outstanding commitments which lead to 
later budget expenditures. Balances of appropriations unexpended at 



109 



q 14 



Public Papers of the Presidents 



the end of the year and still available for expenditure during the next 
year are shown in the following table for each fiscal year since 1950. 
The amounts shown have been modified to reflect related technical 
changes in handling reappropriation items (see pp. 106-107) and to 
restrict unexpended balances to items of appropriations, excluding, for 
example, public debt authorizations. For the most part, these appropria- 
tion balances have been obligated or committed, but the expenditures 
take place one or more fiscal years after the enactment of the 
appropriation. 



Unexpended Balances of Appropriations 



[In billions] 



Fiscal year 

l 95° 

I95 1 

1952 

1953 

1954 estimated 

1955 estimated 

1 Estimated. Detailed accounting data not available. 



Amount 

brought 

forward into 

the year 

1 $11.5 
1 14. 1 

68.8 
78.7 
66.5 



Amount 
carried over 
to next year 
1 $14. 1 

68. 
78. 
66. 
54' 



BUDGET EXPENDITURES 

Budget expenditures in the fiscal year 1955 are estimated at 65.6 
billion dollars, a reduction of 5.3 billion dollars from the revised estimate 
of the fiscal year 1954 expenditures, a reduction of 12.3 billion dollars 
from the expenditures estimated in the 1954 budget document, and a 
reduction of 8.4 billion dollars from actual expenditures in the fiscal 
year 1953. 

As mentioned earlier, the summary tables in the budget have been made 
more revealing by the presentation of expenditures of public enterprises 
on both a gross and a net basis. The difference between the gross and 
net figures reveals the magnitude of the receipts and collections of the 
"revolving funds" which are used for making new loans and other 
expenditures. 

In the summary tables of this budget, these receipts are labeled "appli- 
cable receipts of public enterprise funds." The table on the following 
page shows both gross and net figures for the fiscal year 1955, compared 
with net figures (on the old basis) for 1954 and 1953. 



no 



Dwight D. Eisenhower, 1954 



n 14 



Budget Expenditures by Major Program 
[Fiscal years. In millions] 

1955 estimated r 954 estimated 



Major program 



Gross ex- 
penditures 



Applicable 
receipts of Budget 
public expendi- 



Budget expenditures 
{net) 



National security $44, 860 

Veterans' services and 
benefits 4, 223 

International affairs and 
finance 1 , 885 

Social security, welfare, 
and health 1, 807 

Housing and community 
development 1 , 903 

Education and general 
research 223 

Agriculture and agricul- 
tural resources 6, 752 

Natural resources r, 337 

Transportation and com- 
munication 

Finance, commerce, and 
industry 917 

Labor and manpower. . . 282 

General government .... 1 , 1 64 

Interest 6, 875 

Reserve for contingen- 
cies 150 

Adjustment to daily 
Treasury statement 
basis 



Total 76, 655 

1 Less than 500,000 dollars. 



enterprise 
funds 

w 

S3 1 

6 35 
0) 
2, 180 



4,386 
234 



tures 
{net) 



Budget 
document 



Current 
estimate 



$44, 860 $54, 700 
4,192 4,564 



1,250 
1,807 

-277 

223 

2, 366 
1, 103 



2, 161 

5°9 
288 

1,827 
1,381 



4,277 2,859 1,418 2,111 



755 
1 

4 



162 

281 

1, 160 

6,875 

150 



150 

303 

!,554 

6, 420 

40 



i,779 

i,947 

57 

278 

2,654 
1, 172 

1,856 

164 
265 

i,i75 
6, 600 

75 



1953 actual 



Budget 
expendi- 
tures 
{net) 



48, 720 $50, 274 
4, 160 4, 298 



2, 216 

1,910 

549 

277 

2,936 
i,358 

2,077 

76 
281 

i,439 
6,583 



— 292 



11,085 65,570 77,927 70, 902 73,982 



The fuller presentation in the summary tables does not have any effect 
on the budget surplus or deficit, or upon the changes in the public debt. 
Nor does it indicate any new method of financing these Government- 
owned enterprises. However, it does give a more complete disclosure of 
the Government's financial transactions with the general public. 



in 



f 14 



Public Papers of the Presidents 



As indicated in the preceding table, the term "budget expenditures" 
refers to the net expenditure figures. The term "gross expenditures" will 
be used wherever the activities of public enterprises are discussed on a 
gross basis. The table which follows shows the gross figures for all 3 years, 
reduced to the older net basis by a single deduction for each year at the 
bottom of the table. 



Gross Expenditures By Major Program 

[Fiscal years. In millions] 

1954 estimated 



1 953 Budget Current 

Major program actual document estimate 

National security $50, 274 $54, 700 $48, 721 

Veterans' services and benefits 4, 327 4, 590 4, 190 

International affairs and finance 2, 656 2, 604 2, 249 

Social security, welfare, and health 1, 910 1, 921 1, 947 

Housing and community development. . . 2, 1 18 1, 696 2, 357 

Education and general research 277 288 278 

Agriculture and agricultural resources ... 6, 448 6, 362 8, 087 

Natural resources 1 , 499 1 , 568 1 , 349 

Transportation and communication 4, 474 4, 570 4, 446 

Finance, commerce, and industry 1, 205 897 1, 151 

Labor and manpower 284 306 267 

General government 1 , 444 1 , 558 1,178 

Interest 6, 583 6, 420 6, 600 

Reserve for contingencies 40 75 

Adjustment to daily Treasury statement 

basis — 292 

Subtotal 83, 207 87, 520 82, 895 

Deduct applicable receipts of public enter- 
prise funds 9, 225 9, 593 1 1, 993 

Budget expenditures (net) 73, 982 77, 927 70, 902 



!.955 

estimated 

$44, 860 
4, 223 
1,885 
1,807 

^903 
223 

6,752 
i ? 337 
4,277 

9i7 

282 

1, 164 

6,875 
150 



76, 655 
11,085 
65, 570 



The figures for gross expenditures in this and related tables are derived 
from the detailed accounts of each Government agency contained in 
part II of the 1955 budget document. On this basis, both the gross 
expenditures and the applicable receipts include some transactions relat- 
ing to private bank loans guaranteed by the Commodity Credit Corpo- 
ration and by the Export- Import Bank which involve no use of govern- 
mental funds. These amounts are: 



112 



Dwight D. Eisenhower, IQ54 1R 14 

Gross Expenditures and Applicable Receipts, Guaranteed Loans 
[Fiscal years. In millions] 

1954 estimated 



*953 Budget Current J 955 

Program and agency actual document estimate estimated 

International affairs and finance: Export- 
Import Bank $4. $5 $82 $188 

Agriculture and agricultural resources: 
Commodity Credit Corporation 340 383 1, 564 274 

In the sections of this message discussing international affairs and 
agriculture, these figures are excluded from the totals to make them 
comparable to the basis used in other public enterprise accounts. This 
has no effect on net budget expenditures. 

My recommendations for each of the major programs of Government 
listed in the above tables are discussed in detail later in this message. 
Budget expenditures by agency are described in detail in part II of the 
1955 budget document, and are summarized in the table on the following 
page. 

The analysis on page 115 shows that budget expenditures for the 
national security program and for those items which are relatively fixed 
under provisions of existing and proposed legislation amount to an esti- 
mated 59 billion dollars in the fiscal year 1955, 90 percent of all budget 
expenditures. 

The remaining "all other," 6.6 billion dollars, or 10 percent of the 
total, include some items related to the first two categories. For example, 
those related to our national security effort are the international pro- 
grams for economic development, the Selective Service System, and civil 
defense. Examples of programs which are partly controllable through 
the budgetary process are the mortgage purchases of the Federal National 
Mortgage Association and a few relatively small grant-in-aid programs. 
The bulk of this category is made up of expenditures for the day-to-day 
operations of the Government, such as law enforcement and administra- 
tion, tax collection, the various regulatory agencies, the administration 
of other services rendered to the public, and the cost of direct civil public 
works. 



113 



q 14 



Public Papers of the Presidents 

Budget Expenditures By Agency 
[Fiscal years. In millions] 
1955 estimated 



Agency 

Legislative branch 

The Judiciary 

Executive Office of the Presi- 
dent 

Funds appropriated to the Presi- 
dent 

Independent Offices: 
Atomic Energy Commission. . 

Veterans Administration 

Other 

General Services Administra- 
tion 

Housing and Home Finance 
Agency 

Department of Agriculture 

Department of Commerce 

Department of Defense: 

Military functions 

Mutual military program .... 
Civil functions 

Department of Health, Educa- 
tion, and Welfare 

Department of the Interior .... 

Department of Justice 

Department of Labor 

Post Office Department (general 
fund) 

Department of State 

Treasury Department 

District of Columbia (Federal 
contribution) 

Reserve for contingencies 

Adjustment to daily Treasury 
statement basis 



Gross ex- 
penditures 

$66 
30 

9 
i, 622 

2,425 
4,235 
3,795 

753 

1,712 
4, 760 
1, 028 

37, 575 

4,275 

654 

1,789 
562 
176 
362 

2,775 
214 

7,653 

35 
150 



Appli- 
cable re- 
ceipts of 
public 
enter- 
prise 
funds 



$242 

( 2 ) 
70 

3,317 



2,097 
2, 263 

49 
( 2 ) 
1 14 



2 

34 



2,686 
208 



1 954 estimated 

Budget expenditures 
Budget (net) 

expendi- ■ 

tures Budget Current 
(net) document 1 estimate 



$66 
3° 

9 
1,380 

2,425 

4, 165 

478 



$70 
28 

8 

i,956 

2, 700 

4,494 

979 



751 1,126 



-385 

2,497 

979 

37, 575 

4,275 

54o 

1,787 
528 
176 
361 

89 
214 

7,445 

35 
150 



380 
2,031 
1,031 

45, 5°° 

5,7oo 

640 

1,904 

659 
184 
321 

669 

3i7 

7,i78 

12 
40 



29 
10 

1,702 

2, 200 

4, 190 
520 

936 

-103 

2,945 
1, 080 

41,55° 

4, 200 

617 

i,949 
549 
184 
299 

440 

159 

7,292 

16 

75 



*953 
actual 



expendi- 
tures 
(net) 

$61 
27 

9 
1,828 

4,334 
830 

1, 107 

385 
3,217 
1,063 

43,610 

3,954 

813 

1,920 

587 
171 
300 

659 

271 

7,325 



-292 



Total 76, 655 1 1, 085 65, 570 77, 927 70, 902 73, 982: 

1 Adjusted for purposes of comparability except for reorganization transfers. 

2 Less than 500,000 dollars. 



114 



Dwight D. Eisenhower, IQ54 <§ 14 

The record of budget expenditures since the outbreak of aggression 
in Korea in June 1950 shows considerable variation in the relative 
changes from year to year in the three major categories shown. While 
expenditures for national security have risen markedly and those for 
uncontrollable major programs have fluctuated within rather narrow 
limits, Government spending in all other categories has been steadily 
declining. 

Analysis Indicating Controllability of Net Budget Expenditures 
[Fiscal years. In millions] 

1954 estimated 

1953 Budget Current 1955 

Description actual document estimate estimated 

National security program $50,274 $54,700 $48,720 $44,860 

Relatively uncontrollable major programs 
under existing and proposed legisla- 
tion: 

Legislative and the Judiciary 88 98 92 96 

Interest on public debt and refunds ... 6, 583 6, 420 6, 600 6, 875 

Claims and judgments 129 65 148 135 

Veterans' compensation, pension, and 
benefit programs 3,383 3,524 3,232 3,244 

Payments to employees' retirement 
funds 324 430 34 32 

Payments to Railroad Retirement Fund 
for military service credits 33 35 35 

Grants to States for public assistance .. . 1, 330 1,340 1,389 1, 293 

Grants to States for unemployment com- 
pensation and employment service ad- 
ministration 202 208 190 205 

Veterans' unemployment compensa- 
tion 26 47 40 61 

Unemployment compensation for Fed- 
eral employees 25 

Federal-aid highway grants 509 540 541 555 

Conservation of agricultural land re- 
sources 273 254 225 196 

Removal of surplus agricultural com- 
modities 82 75 205 233 

Agriculture price support 1, 943 729 1, 404 i 3 165 

Total 14.905 I3.765 14,135 H> "5 

All other 8, 803 9, 462 8, 047 6, 595 

Net budget expenditures 73, 982 77, 927 70, 902 65, 570 

**5 



<]f 14 ' Public Papers of the Presidents 

Net Budget Expenditures 
[Fiscal years. In billions] 

1950 J 95i 1952 1953 1.954 1.955 

Description actual actual actual actual estimated estimated 

National security program $13.0 $22.3 $43 . 8 $50 . 3 $48 . 7 $44 . 9 

Relatively uncontrollable major 

programs 15.6 12. 1 12.3 14.9 14. 1 14. 1 

All other 11.0 9.6 9.3 8.8 8.1 6.6 

Total 39.6 44.0 65.4 74.0 70.9 65.6 

RECEIPTS FROM AND PAYMENTS TO THE PUBLIC 

Budget receipts, expenditures, and the budget surplus or deficit reflect 
transactions of funds which belong to the Federal Government. There 
are many other financial transactions of the Federal Government which 
involve funds the Government holds in trust for others, such as the social 
security trust funds. The transactions of these trust funds are shown 
separately in part III of the 1955 budget document. They are not 
included in the budget totals of receipts and expenditures. As a rule, 
the trust funds are now building up accumulations; that is, as they build 
reserves for future liabilities, they are currently taking in more money 
than they pay out. 

By consolidating the trust funds with the budget transactions, and 
by eliminating intragovernmental and certain noncash transactions, it 
is possible to obtain a measure of the flow of money between the Federal 
Government as a whole and the public. 

Receipts From and Payments to the Public, Excluding Borrowing 
[Fiscal years. In millions] 

1954 estimated 

Budget Current 1 955 

1953 actual document esimate estimated 

Gash receipts from the public $71, 282 $75, 150 $74, 932 $70, 842 

Cash payments to the public 76, 554 81, 797 75, 166 70, 727 

Excess of cash receipts 115 

Excess of cash payments 5, 272 6, 647 234 

The trust funds of our social security system reflect the increase in 
rate provided under existing law and the expected increase in payments 
resulting from proposed legislation increasing the coverage and benefits. 

116 



Dwight D. Eisenhower, IQ54 <][ 14, 

If the automatic increase in rate had taken place with no recom- 
mendation for increased coverage and benefits, the excess of cash receipts 
over payments estimated for the fiscal year 1955 would have been a 
greater amount. 

NATIONAL SECURITY 

This budget is based on a new concept for planning and financing our 
national security program, which was partially applied in the budget revi- 
sion recommended last spring for the fiscal year 1954. Our military 
planning in previous years had been based on several successive assumed 
fixed dates of maximum danger, which were extended from time to time 
with procurement and personnel plans focused to achieve maximum readi- 
ness by each such date. This budget is aimed instead at providing a 
strong military position which can be maintained over the extended period 
of uneasy peace. 

It points toward the creation, maintenance, and full exploitation of 
modern airpower. Our military planners and those of the other nations 
of the free world agree as to the importance of airpower. But air forces 
must be complemented with land forces, amphibious forces, antisubmarine 
warfare forces, and fighting ships. The added emphasis on airpower 
complements our plans for improving continental defense against possible 
enemy attack. We expect to continue to improve the combat effectiveness 
of our forces by the application of new weapons and new techniques, and 
ultimately achieve far greater flexibility than heretofore attainable. The 
reassembly of our strategic reserve forces will be as dictated by world 
conditions and the forces kept in a high state of readiness to cope with any 
possible acts of aggression. This budget aims toward building to a maxi- 
mum effectiveness all of this complex of military strength. It provides 
greater expenditures for airpower in the fiscal year 1955 than in any year 
since the close of World War II. The reorientation of our defense strategy 
makes this possible within a lower level of total expenditures for national 
security. 

With the shift in emphasis to the full exploitation of airpower and 
modern weapons, we are in a position to support strong national security 
programs over an indefinite period with less of a drain on our manpower, 
material, and financial resources. 

Today there is a truce in Korea. After 3 years of hostilities, we are 
now in the first year of an armed peace. But we are a long way from 

51986—60 11 n 7 



<J 14 Public Papers of the Presidents 

achieving the kind of peace that is our goal. As long as the Communist 
threat to the free world exists, we must plan to maintain effective military 
strength in close cooperation with the other nations of the free world. 

Our basic security objective is to prevent another outbreak of aggres- 
sion. We must create the necessary deterrent to any possible aggressor by 
maintaining a strong military position at home and abroad. To do this 
takes determination, human and material resources, and careful planning. 

The national security section of the budget includes not only the mili- 
tary functions of the Department of Defense, but also the mutual military 
program, the development of atomic energy, and the stockpiling of stra- 
tegic and critical materials. These four major programs are related and 
designed for the basic purpose of our security. They complement each 
other and must be assessed in conjunction with the long-range planning 
which underlies the fiscal and legislative programs of this administration. 

The previous history of our military budgets has been one of feast or 
famine, depending upon the state of world affairs. In peacetime, appro- 
priations have customarily been much reduced. In wartime, financial 
considerations have been largely ignored. Our present budgetary plans 
represent a departure from these practices. They provide for the con- 
tinued maintenance of a strong military force which is within the financial 
capability of a sound economy. We cannot afford to build military 
strength by sacrificing economic strength. We must keep strong in all 
respects. 

It will be noted from the table on pages 1 20-1 21 that expenditures for 
the Department of Defense and the stockpiling program have been reduced 
in the fiscal year 1954 and I am recommending a further reduction for 
the fiscal year 1955. The reduction in the total Department of Defense 
expenditures will be effected despite the fact that expenditures for air- 
craft, shipbuilding, electronics, guided missiles, construction, research and 
development, and many other defense programs will continue at close to 
record peacetime levels. I am also recommending some increased ex- 
penditures in the fiscal year 1955 for the mutual military program and 
for atomic energy which will bring expenditures for these two programs 
to record levels. Nevertheless total spending for national security is esti- 
mated to decline about 1.6 billion dollars from the fiscal year 1953 to 
1954, and an additional 3.9 billion dollars from 1954 to 1955. 



118 



Dwight D. Eisenhower, ig$4 C][ 14. 

This decline in national security expenditures reflects the dynamic long- 
range plan recommended by the Joint Chiefs of Staff for our military 
forces, the savings resulting from the economies effected by this adminis- 
tration, the cessation of hostilities in Korea, and the decrease in procure- 
ment — particularly with respect to vehicles, ammunition, and soft goods — 
made possible by the improved supplies and materiel position. 

The defense team, both military and civilian, is working hard toward 
improvement of the organization, procedures, and methods of the entire 
Defense Establishment. Already much progress has been made. The 
Office of the Secretary of Defense has been reorganized, and the adminis- 
trative structures of the three military departments are under review, with 
the purpose of making Secretaries of these departments truly responsible 
administrators and establishing clearer lines of responsibility within this 
concept. This will help in achieving the maximum economies that can 
be realized through improved management and administration. 

Considerable progress has been made in standardizing military procure- 
ment, and it is planned to reduce sharply the present approximately 4 
million different procurement items. This alone will ultimately save 
hundreds of millions of dollars in procurement, warehousing, and dis- 
tribution costs. The adoption of commercial maintenance practices for 
aircraft, vehicles, and other equipment is currently saving millions of 
dollars. 

Better transportation methods are being worked out which will produce 
additional economies. Savings are also being effected in personnel, pro- 
curement, and supply activities. Through these and similar economy 
programs, more defense for the taxpayers 5 dollar will be realized. 

Consistent with these plans for a sustained military capability at the 
lowest possible cost is an integrated plan of continental and civil defense. 
Such planning is necessary in order to hold our civilian losses from possible 
enemy attack to a minimum. 

Last summer I told the American people that "the Soviets now have 
the capability of atomic attack upon us, and such capability will increase 
with the passage of time." I made this statement shortly after it was 
established that the Soviet Union had successfully detonated a thermo- 
nuclear device which, if successfully converted into an offensive weapon 
and if exploded over our American cities, would be capable of effecting 
unprecedented destruction. 



119 



^ 14 Public Papers of the Presidents 

The administration has taken a number of actions to deal with this 
serious prospect. Funds are included in the Department of Defense 
budget to expand the system of continental defense which coordinates the 
actions of our radar outposts and our air, naval, and land forces. It will 
provide improved early warning of enemy attack and the men and equip- 
ment to resist any such attack. Expenditures for continental defense in 
the fiscal year 1955 are expected to be greater than ever before in our 
history. 

This budget reflects a new concept of civil defense which takes account 
of the destructive threat of modern weapons and which emphasizes im- 
proved warning of impending attack and planning for the dispersal of 
populations of potential target cities in advance of enemy attack. 

National Security 
[Fiscal years. In millions] 

Expenditures 

l 95° l 95 l J 952 1953 1954 1955 

Item actual actual actual actual estimated estimated 

Gross expenditures: 
Direction and coordination of 

defense $10 $12 $13 $15 $12 $13 

Other central defense activi- 
ties 199 353 379 394 43® 562 

Army defense 3, 983 7, 469 15, 635 16, 242 14, 200 10, 198 

Navy defense 4, 100 5, 582 10, 162 1 1, 874 11, 300 10, 493 

Air Force defense 3,600 6,349 12,709 15,085 15,600 16,209 

Proposed legislation 1 00 

Subtotal — Department 

of Defense 11,892 19, 765 38,898 43,610 41,550 37, 575 

Mutual military program: 

Present programs 130 991 2, 442 3, 954 4, 200 3, 575 

Proposed legislation 700 

Development and control of 

atomic energy 550 897 1, 670 1, 791 2, 200 2, 425 

Stockpiling of strategic and 

critical materials 438 654 837 919 770 585 

Total 13.010 22,307 43,847 50,274 48,720 44,860 

Deduct applicable receipts 0) Q) (}) (*) (*) (1) 

Net budget expenditures 13, 010 22, 307 43, 847 50, 274 48, 720 44, 860 

1 Less than 500,000 dollars. 



120 



Dwight D. Eisenhower, IQ54 ^ 14 

National Security — Continued 
[Fiscal years. In millions] 

New obligational authority 

1950 J95 1 J 952 1953 r 954 J 955 r f' 

Item actual actual actual actual estimated ommended 

Direction and coordination of 

defense ' $u $12 $14 $15 ^3 ^3 

Other central defense activities. . 180 432 419 400 762 548 

Army defense 4,392 19,588 21,354 15,221 12,777 8,236 

Navy defense 4, 359 12, 484 16, 220 12, 689 9, 526 9, 882 

Air Force defense 5, 428 15, 203 22, 375 20, 451 1 1, 417 11, 206 

Proposed legislation 1 , 1 08 



Subtotal — Department of 

Defense 14,37° 47, 7*9 60,382 48,776 34,495 3°> 993 

Mutual military program: 

Present programs 1, 359 5, 222 5, 291 4, 236 3, 800 

Proposed legislation 2, 500 

Development and control of 

atomic energy 794 1,919 1,266 4, 079 1,043 i>3^6 

Stockpiling of strategic and crit- 
ical materials 425 2,910 579 134 



Total new obligational au- 
thority 16,948 57,770 67,518 57,225 39>33 8 34^59 

Much planning, organization, and training remains to be done, how- 
ever, to make this strategy of civil defense fully effective at all levels of 
government. It will be the Federal responsibility, as reflected in this 
budget, to provide warning of impending attacks, and to stockpile med- 
ical supplies. The Federal Government will not assume the responsi- 
bilities which belong to local governments and volunteer forces, but will 
supplement State and local resources, provide necessary information on 
weapons effects, and advise and assist States and localities. 

Many activities throughout the budget are related, directly and indi- 
rectly, to the national security. They are not all classified as national 
security for many reasons. Civil defense is one of these activities. The 
major part of continental defense is in the military budget, but, because 
of the community aspect of the civil defense program, funds for it are 
included as heretofore in the section on housing and community 
development. 

Department of Defense. — The total of the first six items listed in the 
preceding table indicates the portion of our national security expenditures 

121 



<J 14 Public Papers of the Presidents 

which is used for the direct support of our military forces. For these 
items the budget recommends 31.0 billion dollars of new obligational 
authority and estimates expenditures of 37.6 billion dollars in the fiscal 
year 1955. These expenditures are 4.0 billion dollars less than the 
amount now estimated for 1954. The revised estimate for 1954 is 2.1 
billion dollars less than the actual spending in 1953 — in marked contrast 
with the expectation in the budget document of January 9, 1953, that 
such expenditures in the fiscal year 1954 would exceed those in 1953. 

The changing military situation following the sudden attack on Korea 
brought unbalanced programs and uncoordinated financing during the 
fiscal years 195 1 to 1953. Steps have been, and will continue to be, taken 
by this administration to bring these factors into balance. One result 
has been the elimination of the previously forecast increase in expendi- 
tures in 1954. Because of the long lead-time needed to procure military 
equipment, the expenditures have not come down to the level of the new 
obligational authority. In 1954, with new obligational authority of 34.5 
billion dollars, the expenditures are estimated to be 41.6 billion dollars. 
Likewise, in 1955, though I am recommending 31 billion dollars in new 
obligational authority, the expenditures are estimated at 37.6 billion 
dollars. 

At the outbreak of hostilities in Korea we had about 1.5 million men 
under arms. The Korean fighting and general defense buildup brought 
this figure up to an average of 2.4 million in the fiscal year 1951 ; to an 
average of 3.5 million in fiscal year 1952 and a peak strength of 3.7 
million in the last quarter of that fiscal year; and to an average of 
3.6 million in fiscal year 1953. 

Recently, I announced our plan to withdraw two Army divisions from 
Korea and return them to the United States as an initial step in the 
progressive reduction of United States ground forces in Korea. This 
withdrawal is made possible by the cessation of hostilities, the increased 
mobility and striking power of our air and other combat forces, and by 
the increasing capabilities of the Republic of Korea forces. This action 
does not impair our readiness and capacity to oppose any possible renewal 
of Communist aggression with even greater effect than heretofore if 
this should be necessary. United States military forces in the Far East 
will be maintained at appropriate levels, with emphasis on highly mobile 
naval, air, and amphibious units. Funds are provided to the Depart- 



122 



Dwight D. Eisenhower, iQ54 <J 14 

ment of Defense in this budget for the continued support of Republic 
of Korea forces at a high level of effectiveness. 

As the striking power of our combat forces is progressively increased 
by the application of technological advances and the growth of airpower, 
the number of military personnel is being reduced. Total military 
personnel is scheduled to be reduced from the present level of more 
than 3.4 million to approximately 3.3 million by June 30, 1954, and a 
little over 3 million by June 30, 1955. On this basis, this budget 
provides for an average of 3.2 million military personnel during the 
fiscal year 1955, compared with an average of 3.4 million during the 
fiscal year 1954. 

The efficiency of our combat forces is contingent upon having experi- 
enced, well-trained career personnel. In the State of the Union Message 
I indicated that pay alone will not retain in the Armed Forces, in com- 
petition with industry, the necessary proportion of long-term personnel. 
We must provide a more generous use of other benefits important to 
service morale. 

Under the long-range plan recommended by the Joint Chiefs of Staff, 
the number of Army divisions may be less than those currently organized, 
but increased mobility and the availability of modern weapons will 
provide each division with increasingly greater striking power. As part 
of the program to improve continental defense, the number of guided- 
missile antiaircraft battalions will be increased substantially. 

At the present time, the Air Force, Navy, and Marine air forces have 
a total active inventory of approximately 33,000 aircraft, of which 
approximately one-third are jet aircraft. The emphasis on airpower 
is reflected in the objective of increasing the active aircraft inventory 
to more than 40,000 during the next 3 years, with more than half of 
these aircraft to be jets. At that time the Air Force will have 137 
wings — of which 126 will be combat wings — augmented by appropriate 
combat support units. Naval airpower will include 1 6 carrier air groups 
and 15 antisubmarine warfare squadrons, while the Marines will main- 
tain 3 Marine air wings. In each case, these units will be supplemented 
by appropriate combat support units. 

The Navy, in addition to increasing its effective air strength, will 
continue to modernize the fleet, with emphasis on the combatant 
elements. The Marine Corps will maintain three combat-ready 
divisions. 

123 



<][ 14 Public Papers of the Presidents 

The military plan for forces to be maintained in the fiscal year 1955 
permits a reduction of approximately 600 million dollars in the expendi- 
tures required for military pay, allowances, and other direct military per- 
sonnel costs. Operation and maintenance — sometimes called housekeep- 
ing — is being held to a minimum, and expenditures in this area will be 
reduced. 

Major procurement expenditures as a whole will decline by about 15 
percent from 1954 levels, but the 14.5 billion dollars expected to be spent 
for this purpose will still be almost four times as great as the amount spent 
during the fiscal year 1951 — the first year of buildup following the attack 
in Korea. Because the capital investment will already have been made 
for much new equipment and for a considerable portion of the desired 
mobilization reserve of materiel and supplies, expenditures for vehicles, 
ammunition, production equipment, and some other major equipment 
items will be lower in 1955. The accumulation of mobilization reserves 
is being scheduled over an extended period of time, with a view toward 
keeping production facilities of key military items in continued production. 
Provision of capital equipment and modernization of aircraft will continue 
at a rapid pace in 1955, and expenditures for aircraft procurement for 
the Air Force and naval aviation will be at the same general level as in 
1954. Aircraft procurement expenditures will account for 22 percent of 
total Department of Defense expenditures in 1955, compared with 20 per- 
cent in 1954, 17 percent in 1953, and 13 percent in 1952. Shipbuilding 
expenditures will continue at approximately the same level as in 1954, but 
the new obligational authority I am recommending will provide for a 
slightly higher level of shipbuilding in the years immediately ahead in 
order to meet the problem of "block obsolescence" of the fleet, a major 
portion of which was built during World War II. 

Expenditures for military public works in the fiscal year 1955 will be 
maintained at the 1954 level, as work progresses on air bases, antiaircraft 
and radar sites, and other necessary installations. Expenditures for re- 
serve components are expected to increase by about 20 percent as the 
buildup of a vigorous reserve program continues. Research and develop- 
ment will continue at a high level. 

The following table shows, by major cost category, the elements making 
up the Department of Defense budget. 



124 



Dwight D. Eisenhower, 1954 ^ 14 

Department of Defense 

[Fiscal years. In millions] 

New obli- 
gational 
Budget expenditures authority 

J950 1 1 95 1 1952 1953 1954 1955 1955 

Cost category actual actual actual actual estimated estimated estimated 

Military person- 
nel $7,148 $11, 152 $11,556 $10,910 $10,335 $10,673 

Operation and 
maintenance 6, 444 1 1, 855 10, 335 8, 979 8, 769 9, 107 

Major procure- 
ment and 

production (3, 976) (11, 478) (17, 123) (17, 273) (14, 546) (7, 303) 

Aircraft 2,412 4,888 7,416 8,425 8,310 4,399 

Ships 381 624 1, 191 1, 005 990 1, 150 

Other 1,183 5 5 966 8,516 7,843 5,246 1,754 

Military public 
works 439 1,819 i,9 I 3 J > 68 7 1.650 1,109 

Reserve com- 
ponents 537 476 521 560 675 710 

Research and 
development 758 1, 163 1, 412 1, 425 1, 350 1, 352 

Establishment- 
wide activities 621 656 666 735 740 739 

Working capital 
(revolving) 
funds — 158 299 84 — 19 —490 

Total $11,892 19,765 38,898 43,610 4 I >55° 37.575 30.993 

1 Detail not available. 

Mutual military program. — Because our own national security is vitally 
dependent on the continued strength of our allies throughout the free 
world, we have undertaken over the past several years to assist them in 
building the military forces necessary to deter Communist aggression from 
without or subversion from within. Since the beginning of the mutual 
defense assistance program in fiscal year 1950, when the armed strength 
of the free world was at low ebb, 18 billion dollars have been made avail- 
able to furnish military equipment and training to friendly nations. More 
than half of this amount will have been spent by the end of the fiscal year 
1954. This assistance, combined with their own resources, enables our 
allies and friends to equip and train an equivalent of 175 army divisions, 
about 220 air force squadrons, nearly 1,500 naval aircraft, over 440 naval 
vessels, and related combat and logistic units to back up these forces. 

51986—60 12 I2 5 



<][ 14 Public Papers of the Presidents 

These friendly forces located in key strategic areas for the defense of the 
free world are largely supported by the countries themselves. In addition, 
substantial forces are exclusively supported by our allies. Without all of 
these forces the United States would be faced with a potential defense 
burden so costly that it could well sap the economic vitality of our Nation. 
These forces constitute an integral part of the military strength of the free 
world. 

Since the mutual military program is so closely integrated with our 
own military plans and program, it is shown this year in the defense 
chapter of part II of the budget, and is discussed here as part of our 
national security program. Because the mutual military program is also 
an integral part of our foreign policy, the Secretary of Defense will con- 
tinue to carry out his responsibilities for the mutual military program 
under the foreign policy guidance of the Secretary of State and within 
the terms of the mutual security legislation passed by the Congress. 

In this budget, mutual military program funds are shown under the 
new obligational authority of the Department of Defense. However, this 
arrangement is being reviewed and my recommendations will be set 
forth in connection with the authorizing legislation I shall recommend 
to the Congress. This authorizing legislation should permit adjustments 
in the composition of our aid programs to meet changing needs due to 
new international developments. It is therefore essential that the Con- 
gress maintain the present Presidential powers of transferability of all 
foreign assistance funds, whether for military, technical, or economic 
assistance. 

The recent Paris meeting of the North Atlantic Treaty Organization 
set realistic force goals for the 14 member nations, which will provide 
for a substantial increase in the defensive strength of NATO. The 
mutual military program provides the bulk of the initial equipment and 
certain mobilization reserves needed to meet these new goals. Mean- 
while, our allies are themselves carrying heavy burdens. Their military 
budgets during the period of this program exceed by many times the 
value of the equipment we have so far delivered. They have expressed 
their determination to continue their efforts at high levels. 

Despite the progress which NATO has made, we are nevertheless faced 
with a serious need to achieve the unity in Europe which is necessary 
for strength and security in the North Atlantic area. As is well known, 

126 



Dwight D. Eisenhower, IQ54 Cfl 14, 

the treaty constituting the European Defense Community is not as yet in 
effect. It is not necessary for me to dwell on the reasons why the EDG 
is urgently needed. However, I am convinced that the Europeans who 
must decide on this essential next step toward building a European 
community are fully aware of what is at stake and will in the near future 
reach their decisions. 

NATO is engaged in a reappraisal of strategy and tactics to reflect 
the prospective availability of atomic and other new weapons. These 
studies, to be meaningful, require the dissemination of certain informa- 
tion regarding atomic weapons to NATO commanders. This will have 
a significant impact on NATO planning and provide a greater measure 
of security for all. I shall recommend that the Congress amend the 
Atomic Energy Act to permit us to disseminate classified information to 
our allies with regard to the tactical use of atomic weapons. This, of 
course, would be accomplished under stringent security regulations. It 
is essential that action on this matter be taken by the Congress during 
the current session. 

In Indochina, where the French Union and Associated States forces 
are holding back Communist efforts to expand into the free areas of 
Asia, the United States is making a major contribution by providing 
military equipment and other military support. The amount as well 
as the timeliness of this military assistance will be an important factor 
in improving the situation. Additional native forces must be trained 
and equipped to preserve the defensive strength of Indochina. This 
assistance is required to enable these gallant forces to sustain an offensive 
that will provide the opportunity for victory. 

We have helped the Chinese Nationalist forces to strengthen the defense 
of the Island of Formosa. This assistance will be continued as will assist- 
ance to other countries of the free world such as the Philippines, Thailand, 
and some of the American Republics. 

The mutual military program, like our domestic military program, is 
now designed to build strength for the long pull rather than meet a given 
target date. Accordingly, we will concentrate on helping equip forces 
which our allies can themselves support over a long period of time, with 
minimum dependence upon aid from the United States. We have suc- 
ceeded in substantially reducing the need for additional funds in fiscal 
year 1955 compared to previous years. 



127 



<][ 14 Public Papers of the Presidents 

Our mutual security program continues in two related parts — the eco- 
nomic and technical program is much smaller in amount than the mutual 
military program and is discussed in a later section under international 
affairs. In that section is a comparative summary of the combined 
program. 

Development and control of atomic energy. — In my speech before the 
United Nations on December 8, 1953, I made proposals looking toward 
a resolution of the atomic danger which threatens the world. My budg- 
etary recommendations for the program of the Atomic Energy Commis- 
sion for the fiscal year 1955 contemplate both new efforts to advance 
peacetime applications of atomic energy and also additional production 
of fissionable materials. All men of good will hope that these fissionable 
materials, which can be used both for peace and for military defense, will 
ultimately be used solely for peace and the benefit of all mankind. 

Under the recommendations in this budget, expenditures of the Atomic 
Energy Commission will rise in the fiscal year 1955 to the highest point 
in our history. Operating costs will rise significantly as newly completed 
plants are brought into production. Capital expenditures will continue at 
a high level as construction goes forward on major new plants authorized 
in recent years. New obligational authority recommended in 1955 is 
above that provided in 1954, because of the expansion in operations. 
Initiation of new construction projects will be at a lower level than in 
recent years, and they will be limited essentially to facilities directly related 
to the production program and to several urgently needed research and 
development facilities. In all areas of activity the Commission is making 
strenuous efforts to effect economies; results are being accomplished 
in the reduction of unit costs. 

The increase in expenditures for operations from 9 1 2 million dollars in 
the fiscal year 1954 to 1,182 million dollars in 1955 is due primarily to 
expanded operations at the Commission's facilities at Oak Ridge, Padu- 
cah, Portsmouth, Hanford, and Savannah River, as plants are completed 
and placed in operation. To meet the greater requirements for raw 
materials for this enlarged productive capacity, increased amounts of 
uranium ores and concentrates will be purchased. Due to vigorous efforts 
in recent years to expand our sources of supply in this country and abroad, 
increased amounts are now being made available to match the increase 
in requirements. 

128 



Dwight D. Eisenhower, IQ54 ^ 14 

Atomic reactor development will be focused particularly upon the 
development of industrial atomic power for peacetime uses. The Com- 
mission will move forward on the construction of a large atomic power 
reactor to be initiated in the fiscal year 1954, marking a significant 
advance in the technology of peacetime atomic power. Research and 
development, including construction of experimental facilities, will con- 
tinue also on several other types of reactors which show promise of ulti- 
mately producing power at economic rates. 

The launching — this month — of the first atomic submarine, the 
U. S. S. Nautilus, will be followed in the fiscal year 1955 by the launch- 
ing of the U. S. S. Seawolf, a second atomic submarine of different 
design. Research on the more difficult problems of aircraft propulsion 
by atomic energy will continue. 

With the advent of various technical developments relating to atomic 
power and with the greater availability of raw materials and fissionable 
materials, the time has arrived for modification of the existing atomic 
energy legislation to encourage wider participation by private industry 
and by other public and private groups in this country in the develop- 
ment of this new and uniquely attractive energy source for peaceful 
purposes. Such widespread participation will be a stimulating and 
leavening force in this important field and will be consistent with the 
best traditions of American industrial development. The congressional 
Joint Committee on Atomic Energy last summer held public hearings 
which have served a most useful purpose of identifying and developing 
both the problems and the opportunities which emerge as preparations 
are made to depart from the Federal Government's existing monopoly 
in this field. Legislation is being recommended to the Congress which 
would encourage such participation and yet retain in the Federal Gov- 
ernment the necessary controls over this awesome force. 

Further amendment of the Atomic Energy Act is needed also to enable 
us to realize the full value of our atomic energy development for the 
defense of the free world. I shall recommend amendments which would 
permit, with adequate safeguards, a greater degree of exchange of classi- 
fied information with our allies, in order to strengthen their military 
defenses — as already mentioned — and to enable them to participate more 
fully in the development of atomic power for peacetime purposes. I 
shall recommend also an amendment which would permit the transfer 



129 



4J 14 Public Papers of the Presidents 

of fissionable material to friendly nations to assist them in peacetime 
atomic power development, particularly those nations which are supply- 
ing us with uranium raw materials. This proposed amendment, as well 
as the previously mentioned amendment, will provide adequate safe- 
guards for the security of the United States. These legislative recom- 
mendations are independent of my recent proposal for the establishment 
of an international agency to advance the peacetime benefits of atomic 
energy, for which additional legislation would be needed. 

It is now feasible to plan to terminate Federal ownership and operation 
of the towns of Oak Ridge, Tennessee, and Richland, Washington. To 
enable the citizens of these communities to manage their own affairs in a 
more normal fashion, legislation will be recommended which would per- 
mit them to purchase their own homes and to establish self-government 
in these communities. 

Stockpiling of strategic and critical materials. — Considerable progress 
lias been made in the fulfillment of the national stockpile goals, and fur- 
ther substantial progress is expected during the fiscal year 1955. By the 
end of 1955 about 50 of the 73 materials objectives will be virtually 
completed. Consequently, expenditures will decline sharply from 919 
million dollars in 1953 to 770 million dollars in 1954 and 585 million 
dollars in 1955. The total value of all stockpile objectives is estimated 
at 7.2 billion dollars, of which about 5.5 billion will be on hand by June 
30, 1955, to meet industrial and mobilization requirements in times of 
emergency. In addition to these direct expenditures from stockpile appro- 
priations, the borrowing authority provided under the Defense Production 
Act, discussed in the finance, commerce, and industry section of this mes- 
sage, is used primarily for expanding the supply of critical materials. Net 
expenditures under this authority are estimated at 381 million dollars in 
the fiscal year 1954 and 308 million dollars in 1955. Therefore, a total 
of nearly 900 million dollars will be spent in the fiscal year 1955 to assure 
an adequate supply of critical materials in the event of an emergency. 

veterans' services and benefits 
Since 1940 the number of veterans has risen nearly fivefold and it is still 
increasing rapidly as men are discharged from the Armed Forces. There 
are now more than 20 million veterans, who, with their families, consti- 
tute 40 percent of our people. Over 300 laws provide a variety of special 
"benefits and services to this large segment of our population. 

130 



Dwight D. Eisenhower, ig54 



q 14 



It is our firm obligation to help our veterans overcome the handicaps 
which they incurred in the service of the Nation so they can return to 
their normal civilian pursuits. We must first of all do what we can to ease 
the burdens of veterans disabled in service and the families of those who 
have died from service causes. This is our primary responsibility, and 
generous benefits to them are the core of our veterans' programs. 

Secondly, we must make available readjustment aids through well- 
conceived and properly administered programs for those veterans dis- 
charged after service during national emergencies. 

Finally, we must remember that the best way to help our millions of 
veterans is by making it possible for them to share fully in the economic 

Veterans' Services and Benefits 
[Fiscal years. In millions] 



Program or agency 
Gross expenditures: 
Readjustment benefits: 

Education and training 

Loan guaranty and other benefits (Veterans 

Administration) 

Unemployment compensation (Labor De- 
partment) 

Compensation and pensions 

Insurance and servicemen's indemnities 

Hospitals and medical care: 

Current expenses 

Hospital construction 

Other services and administration (Veterans 
Administration and other) 

Total 

Deduct applicable receipts: 

Insurance programs (Veterans Administra- 
tion) 

Other services and administration (Veterans 
Administration, primarily canteen serv- 
ices) 



Expenditures 




Recom- 
mended new 
obligational 

authority 
for 1955 


!953 
actual 


*954 J 955 

estimated estimated 


$659 


$473 


$554 


$350 


112 


89 


37 


37 


26 


40 


61 


56 


2, 420 


2,485 


2,535 


2,535 


I02 


105 


75 


72 


657 


693 


694 


689 


IOO 


84 


60 


44 


251 


221 


207 


176 



4.327 4,i9° 4,223 



1 3, 959 



28 



28 



28 



Net budget expenditures 4, 298 4, 160 4, 192 

1 Compares with new obligational authority of 4,132 million dollars in 1953 and 4,229 
million dollars in 1954. 



l 3 l 



^f 14 Public Papers of the Presidents 

and social gains of our country. This means assuring them adequate 
job opportunities. It also means assuring them, both during and after 
military service, of the same protection under the broad social-security 
programs that is provided for nonveterans. Progress in achieving these 
objectives will lessen the need for pensions and other special benefits for 
the vast majority of veterans who, fortunately, did not incur disabilities 
during their service. 

The appropriations recommended in this budget will enable the Gov- 
ernment to discharge fully our obligations to veterans in the coming fiscal 
year. Funds are included to provide for all essential benefits and serv- 
ices, in some cases exceeding the amounts spent in any previous year. 
At the same time allowance has been made for anticipated savings from 
improvements in efficiency, resulting in part from a general reorganiza- 
tion of the Veterans Administration. 

Readjustment benefits. — Education and training and loan guaranty 
benefits are provided for veterans of World War II and the current emer- 
gency. In addition, special vocational rehabilitation assistance is pro- 
vided for service-disabled veterans of both periods, and unemployment 
compensation is available to veterans of the Korean conflict. 

Expenditures of 652 million dollars for all readjustment benefits in 
the fiscal year 1955 are estimated to be about 8 percent higher than in 
the current year. While expenditures for benefits to veterans of the 
Korean conflict are increasing, outlays for education and training, reha- 
bilitation, and loan guaranty benefits to World War II veterans are 
declining. Thus, the proportion of total outlays for all readjustment 
benefits going to veterans of the Korean conflict is expected to rise from 
about one-half to about four-fifths in the one year. 

During the fiscal year 1955 an average enrollment of 537,000 vet- 
erans — more than 30,000 above the previous year — is expected in school, 
job, and farm training courses. Of this number, an estimated 412,000 
are veterans of the Korean conflict. 

A decline in expenditures for loan guaranty and other benefits from 
x 953 to x 955 reflects the discontinuance of payment by the Government 
of a gratuity up to 160 dollars on each guaranteed loan issued after 
September 1, 1953. 

Unemployment compensation payments to veterans will increase. 
This is the result of the growth in the number of eligible veterans. 

132 



Dwight D. Eisenhower, 1Q54 <][ 14 

While existing legislation was intended to provide benefits during the 
transition period after discharge, it does not include a limit on the time 
during which veterans may apply for unemployment compensation. I 
recommend that the law be changed to provide for a time limit for 
riling claims after discharge. This should provide reasonable time for 
veterans to make their readjustment to civilian life and to establish benefit 
rights under the general unemployment compensation program. Limits 
are now provided in the Servicemen's Readjustment Assistance Act for 
other benefits. 

Compensation and pensions. — The estimated expenditures of 2.5 bil- 
lion dollars will provide for compensation and pension benefits to an 
average of 3.3 million individuals and families. This total includes nearly 
1.8 billion dollars in compensation payments to service-disabled veterans 
and families of those veterans who have died from service-connected 
causes, and 700 million dollars for non-service-connected pensions. It 
also includes 45 million dollars for subsistence payments to an average 
of 20,000 disabled veterans in the vocational rehabilitation program and 
for 1 15,000 burial awards. 

Expenditures for compensation and pensions have increased sharply 
in the last decade, and the long-run outlook on the basis of present laws 
and veteran population is that these expenditures will rise to double their 
present annual amount within several decades. At the same time, a large 
proportion of the present or potential recipients of these benefits will also 
qualify for payments under the Government's old-age and survivors 
insurance program. 

While the conditions under which veterans are entitled to compensa- 
tion and pension benefits are largely specified by law, the Administrator 
of Veterans' Affairs necessarily has important responsibilities for their 
administration, and the budget estimates for the fiscal year 1955 assume 
additional efforts to prevent unsound practices and abuses. 

Insurance and servicemen's indemnities. — The Government reimburses 
the veterans' insurance trust funds for payments made for deaths trace- 
able to war hazards in the case of policyholders under the national service 
life insurance contracts issued mostly to World War II veterans and under 
the United States Government life insurance policies issued to veterans 
of earlier periods. The Government also pays certain other insurance 
benefits directly to policyholders. Insurance payments are expected to 



133 



C][ 14 Public Papers of the Presidents 

decline from 84 million dollars in the fiscal year 1954 to 45 million 
dollars in 1955. 

Since the enactment of the Servicemen's Indemnity Act of 1951 as a 
substitute for a Government life insurance program, the families of serv- 
icemen who die on duty or within 120 days after separation are paid 
benefits at the rate of $92.90 a month for 10 years. These payments are 
expected to increase 41 percent from the 1954 level to 30 million dollars 

in 1955- 

Hospital and medical care. — The estimates for current expenses of the 
veterans' hospital and medical programs will provide for an average 
of 1 10,200 patients in Veterans Administration and contract hospitals and 
25,700 members in Veterans Administration and State domiciliary 
facilities during the fiscal year 1955. The cost of caring for the increase 
of about 2 percent in the hospital load compared to the level now esti- 
mated for 1954 is offset, however, by lower amounts for the medical and 
dental outpatient care programs. The lower estimates for the dental 
outpatient care program are based primarily upon the recommendation 
that the Congress extend for 1955 the language enacted for the fiscal 
year 1954 in Public Law 149, 83d Congress, limiting dental treatment 
for noncompensable disabilities to those cases for which application for 
treatment is made within one year of discharge. 

The budget includes recommended new obligational authority of 44 
million dollars for new construction and improvements, including 30 
million dollars to complete new hospitals at San Francisco and Topeka, 
toward which the Congress made an initial appropriation for the fiscal 
year 1954. 

I am recommending increased appropriations to provide for an average 
employment in the Veterans Administration medical and hospital pro- 
grams of 136,000 during the fiscal year 1955, an increase of 10,500 from 
average employment in 1953 and 3,000 more than in the current year. 
This increase provides for operation of the new hospital facilities which 
have been constructed. 

Other services and administration. — General administrative expenses 
of the Veterans Administration are estimated to decline further in the 
coming year as the result of declining workloads for readjustment of 
World War II veterans as well as improved performance resulting from 
better organization and greater efficiency. Average employment of 35,600 

134 



Dwight D. Eisenhower, ig54 1$ 14 

in Veterans Administration nonmedical programs is estimated for 1955, 
1 1 percent below employment in the current year and 1 7 percent less than 
in 1953. 

Trust funds. — Under the United States Government life insurance and 
national service life insurance trust funds, nearly 7 million policies con- 
tinue in force, carrying 44 billion dollars of life insurance issued before 
enactment of the Servicemen's Indemnity Act of 1951. The receipts of 
these funds now roughly balance their disbursements. The transactions 
of these, as of other, trust funds are not included in the budget totals. 

Veterans' Life Insurance Funds 

(Trust funds) 

[Fiscal years. In millions] 

1954 1955 

Item J 953 actual estimated estimated 

Receipts: 

Transfers from general and special accounts $84 $75 $36 

Interest on investments 200 208 208 

Premiums and other 427 522 485 

Total 711 805 729 

Expenditures: 

Dividends to policyholders 190 297 217 

Benefits and other 470 533 524 

Total 660 830 741 

Net accumulation (+) or withdrawal (— ) +51 —25 — 12 

Balance in funds at close of year 6, 613 6, 588 6, 576 

INTERNATIONAL AFFAIRS AND FINANCE 

My budget recommendations for the international programs of the 
Government will enable us to hold our newly won initiative in world 
affairs and move toward a lasting peace. The budget for international 
affairs and finance includes funds required for the conduct of our foreign 
affairs, for the programs for economic and technical development abroad, 
and for our foreign information and exchange program. 

The mutual military program, which was formerly included in the 
budget along with these programs under the heading "International se- 
curity and foreign relations" has been discussed in this budget message 

135 



C|[ 14 Public Papers of the Presidents 

as part of the national security program. At the same time, military 
assistance is intimately related to and must be administered in the further- 
ance of our foreign policy. 

The extent of our assistance under both the mutual military program 
and mutual economic and technical program is shown in a summary 
table below. This table covers all components of the present mutual 
security program. This entire program is directed toward the establish- 
ment of conditions overseas which, in one way or another, contribute to 
our own security and well-being. 

Mutual Security Programs, Military and Economic 
[Fiscal years. In millions] 

I 955 recom " 
1 954 mended or 
Expenditures: J 953 actual estimated estimated 

Mutual military program $3, 954 $4, 200 $4, 275 

Mutual economic and technical program 1,702 1,300 1,125 

Total 5, 656 5, 500 5, 400 

New obligational authority: 

Mutual military program l 4, 236 3, 800 2, 500 

Mutual economic and technical program 2 1, 907 926 1, 010 

Total 6, 143 4, 726 3, 510 

1 Does not include reappropriations of $321 million for 1953 and $1,763 million for 1954. 

2 Does not include reappropriations of $128 million for 1953 and $179 million for 1954. 

Our national security and international programs are designed to deter 
would-be aggressors against the United States and other nations of the 
free world, and to strengthen our efforts for peace by all appropriate means 
including diplomatic negotiations with the Soviets. With a position of 
strength, an effective conduct of our foreign relations by the Department 
of State is the keystone of our efforts to win our way to peace. There has 
never been a time when the future security and welfare of our country 
were more dependent upon the exercise of wise leadership in the realm of 
world affairs. My recommendation for funds for the Department of 
State will enable it to meet this challenge. 

Some countries are still facing such economic conditions that they 
are not able solely by their own efforts to support the desired military 
effort or to provide for the economic growth and progress essential to 

136 



Dwight D. Eisenhower, IQ54 



«I 14 



our mutual objectives. It is thus still necessary that supplementary 
goods, services, and technical skills be provided by the United States. 
It is for these purposes that funds for economic and technical develop- 
ment are requested for fiscal year 1955. 

Through our information and exchange program we are attempting 
to achieve a clear understanding by others of our aims, objectives, and 
way of life and a better understanding by us of the aspirations and cul- 
tures of other countries. Such mutual understanding increases our ability 
to exercise strong, sympathetic, and cooperative leadership in the mutual 
efforts of free peoples to achieve their common goals. 

International Affairs and Finance 
[Fiscal years. In millions] 





Gros: 


r expenditi 


'ires 


Net 


expenditm 


res 


Recom- 
mended new 
obligational 






1954 


1955 




J 954 


1955 




1953 


esti- 


esti- 


J 953 


esti- 


esti- 


authority 


Program 


actual 


mated 


mated 


actual 


mated 


mated 


for 1955 


Conduct of foreign affairs. . . 


$150 


$129 


$125 


$150 


$129 


$125 


$116 


Economic and technical de- 
















velopment: 
















Present program 1 


2,396 


i 5 943 


i, 105 


1,960 


*>555 


658 


15 


Proposed legislation 






37o 






37o 


1, 010 


Surplus agricultural com- 
















modities disposal (pro- 
















posed legislation) 














300 


Foreign information and ex- 
















change activities 


106 


95 


97 


106 


95 


97 


105 



Total 2,652 2,167 1,697 2,216 1,779 ^250 1, 546 

1 Gross expenditures exclude private bank loans guaranteed by the Export-Import Bank 
and net repayments thereof in the amounts of 4 million dollars in 1953, 82 million dollars 
in 1954, and 188 million dollars in 1955. 

During the past year progress has been made toward the accomplish- 
ment of the objectives of our international programs. Not only have our 
allies and friends grown in military strength, but also a continued high 
level of production and increased gold and dollar reserves have permitted 
European countries to become more nearly self-supporting. This im- 
provement makes it possible for estimates of expenditures for economic 
and technical programs included in this budget to be significantly lower 
than the already reduced level of the fiscal year 1954. Significant con- 



137 



^f 14 Public Papers of the Presidents 

tributary factors in this progress have been our assistance in past years 
and the positive and constructive fiscal and other economic measures 
which have been taken by the other countries themselves. As a result 
the fiscal year 1955 represents, in a sense, a period of transition from 
heavy dependence by a large number of countries upon massive bilateral 
economic assistance from the United States to the use of such assistance 
in more limited circumstances. Progress in such a transition will gen- 
erally depend upon the extent to which our own policies, and those of 
our friends, contribute to increased private investment, increased exports 
to the United States, internal financial and economic reforms in some 
countries, and multilateral cooperation for the achievement of strong and 
self-supporting economies. 

Conduct of foreign affairs. — The burden of the vastly enlarged respon- 
sibility involved in our international affairs falls heavily upon the Depart- 
ment of State since the Secretary of State is the officer responsible, under 
the President, for the development and control of all foreign policy and for 
the conduct of our relations with foreign governments and international 
agencies. Successful discharge of this broad responsibility calls for wise 
and informed diplomatic support to our national leaders in negotiations 
carried on at the highest levels as at Bermuda and Berlin. It requires the 
day-to-day representation of our national interest through some 273 
diplomatic missions and consular offices abroad. We also must continue 
to give our firm support to the United Nations and other international 
organizations, and bear a part of the costs of these organizations and their 
programs. A successful administration of our foreign policy requires the 
State Department to report and appraise political, economic, and social 
conditions and trends abroad; to provide foreign policy guidance to all 
agencies carrying on programs overseas; and to coordinate in the field all 
foreign policy aspects of overseas programs. Finally, advice must be 
furnished as to the foreign policy implications of domestic programs. 

Net budget expenditures for the conduct of foreign affairs in the fiscal 
year 1955 are estimated at 125 million dollars. This expenditure repre- 
sents a decrease of 4 million dollars from 1954, resulting from reduction 
of personnel and other costs of the Department of State including the 
curtailment of civilian occupation activities in Germany. 

Economic and technical development. — Net budget expenditures for 
economic and technical development in the fiscal year 1955 are estimated 

138 



Dwight D. Eisenhower, 1954 *I 14 

at 1,028 million dollars, compared with 1,555 million dollars in the fiscal 
year 1954 and 1,960 million dollars in 1953. 

This budget, as did the fiscal year 1954 budget, reflects proportionately 
greater emphasis on programs in Asia, Africa, and Latin America. It 
contemplates new appropriations for aid to very few European countries. 

In the Far East there is a need for contributions to provide for relief 
in Korea and^ now that hostilities have been terminated, for an expanded 
reconstruction program for that war-devastated country. Funds are also 
recommended to maintain the strength and security of Formosa and to 
support further the effort of our friends combating Communist aggression 
in Indochina. This budget also provides for technical assistance and eco- 
nomic development in India, Pakistan, the Philippines, and other nations 
of Asia to encourage continued progress in their efforts to improve the 
living conditions of their people. 

With respect to the Near East the budget provides for helping relieve 
the plight of Arab refugees through contributions to the United Nations 
refugee agency, and for technical assistance and supplementary economic 
development in the Arab States, Israel, and Iran. 

Provision is also made in the budget for continuing the technical assist- 
ance program for Latin America. This program, which has existed for a 
number of years, contributes to a reduction of social and economic prob- 
lems upon which communism feeds and which hampers the development 
of stable and growing economies. 

Surplus agricultural commodities. — I plan to request authority soon 
to use a part of our accumulated surpluses of agricultural products to 
assist in strengthening the economies of friendly countries, and otherwise 
to contribute to the accomplishment of our foreign policy objectives. 
Authority will be requested to use for this purpose over a 3-year period 
up to 1 billion dollars worth of commodities held by the Commodity 
Credit Corporation. This budget anticipates a request for a supplemental 
appropriation of 300 million dollars for the fiscal year 1955 to reimburse 
that Corporation for commodities used. 

This program for use of agricultural surpluses is designed to comple- 
ment our general program of economic and technical development and 
must be closely coordinated with it. The program for use of surplus 
agricultural commodities involves the use of stocks held by the Commodity 
Credit Corporation. No additional budget expenditures will be re- 
quired for these commodities. 

139 



<I 14 Public Papers of the Presidents 

It should be emphasized in connection with this program that it is 
purely temporary, predicated upon adoption of our domestic agricultural 
program which should not involve the continued accumulation of large 
surpluses. Special safeguards will be provided which will require that 
commodities furnished must be in addition to amounts which other- 
wise would have been imported and must not displace the usual market- 
ings of the United States and friendly countries. 

Foreign information and exchange activities. — This budget includes ex- 
penditures of 97 million dollars for foreign information and exchange 
activities, including those functions conducted by the new United States 
Information Agency. This is an increase of 2 million dollars over the 
expenditures for foreign information and exchange programs in the fiscal 
year 1954. 

In October, on the advice of the National Security Council, I directed 
the United States Information Agency to develop programs which would 
show the peoples of other nations that the objectives and policies of the 
United States will advance their legitimate aspirations for freedom, prog- 
ress, and peace. I believe that if the peoples of the world know our 
objectives and policies, they will join with us in the common effort to 
resist the threat of Communist imperialism and to achieve our mutual 
goals. It is essential that the United States Information Agency have 
the tools to carry out this mission. 

The United States Information Agency will reach 77 free countries 
through radio, press, motion pictures, or information centers and will reach 
10 Iron Curtain countries through radio broadcasts. 

My budget recommendations for information and exchange activities 
include 15 million dollars of new obligational authority for educational 
exchange programs. These programs are designed to promote a receptive 
climate of public opinion overseas through the exchange between the 
United States and over 70 foreign countries of students and persons who 
are leaders important to the present or future of their nations. 

SOCIAL SECURITY, WELFARE, AND HEALTH 

I believe that, along with the essentials of protecting the freedom of 
our people and maintaining a strong and growing economy, we must 
make greater and more successful efforts than we have made in the past 
to strengthen social security and improve the health of our citizens. In so 
doing, we build for the future, and we prove to the watching world that 

140 



Dwight D. Eisenhower, ig$4 <J[ 14 

a free Nation can and will find the means, despite the tensions of these 
times, to progress toward a better society. 

The keystone of our social security program today is the system of old- 
age and survivors insurance, under which nearly 70 million people are 
insured and 6 million people are presently receiving benefits. The eco- 
nomic protection afforded by this social insurance is now accepted as 
basic in our society. Yet there are serious defects in the system. In my 
recent social security message, I submitted specific recommendations to 
remedy these defects. 

The legislation to improve old-age and survivors insurance will not 
directly affect the budget totals, since this program is financed through 

Social Security, Welfare, and Health 
[Fiscal years. In millions] 



Program or agency 
Gross expenditures: 
Public assistance: 

Present program $i, 332 

Proposed legislation 

Promotion of public health: 

Present program 

Proposed legislation 

Aid to special groups: 
Vocational rehabilitation : 

Present program 

Proposed legislation 

School lunch 

Indian welfare and other 

Accident compensation 

Prisons and probation 

Retirement and dependents insurance (Rail- 
road Retirement Board) 33 35 

Defense community facilities and services 1 4 









Recom- 


Expenditures 


mended new 








obligational 








1953 


J 954 


r 955 


authority 


actual 


estimated 


estimated 


f or !955 


$1,332 


$1,391 


Si, 187 


$1,202 






108 


108 


316 


289 


281 


234 






7 


89 


25 


25 


21 


21 






8 


9 


83 


83 


68 


68 


48 


51 


54 


54 


43 


42 


43 


43 


29 


27 


28 


29 



Total 1,910 1,947 1,807 2 1,857 

Deduct applicable receipts (*) ( J ) (*) 



Net budget expenditures 1, 910 1, 947 1, 807 

1 Less than 500,000 dollars. 

2 Compares with new obligational authority of 1,886 million dollars in 1953 and 1,919 
million dollars in 1 954. 

141 



<][ 14 Public Papers of the Presidents 

payroll taxes which go into a trust fund, and the expenditures are made 
from the fund rather than from the general budget accounts. However, 
the legislation should lessen the need for expenditures from the general 
budget accounts to help the States pay public assistance to the needy 
aged and to dependent children, as old-age and survivors insurance takes 
over a larger and larger role in providing them with basic protection. 

To reflect this development, legislation is being prepared to reduce 
Federal grants to States for old-age assistance as old-age and survivors 
insurance continues to take over an increasing share of the load. My 
social security message has set forth these recommendations in more detail. 

This administration flatly opposes the socialization of medicine. Under 
the traditional American approach, private and nonprofit medical and 
hospital insurance programs have grown steadily and now cover a large 
segment of the population. Yet there is still a long way to go. Many 
families are not protected; many health costs are not insured. Positive 
action to promote the health of all our people has been recommended in 
my recent message. 

The budget estimates for the fiscal year 1955 provide for the costs of 
the proposed legislation to improve the health of the people and also for 
the improvements and expansion of vocational rehabilitation services for 
the disabled. Experience has proved that these efforts pay for themselves 
many times over. 

Including the proposed legislation, net budget expenditures for social 
security, welfare, and health in the fiscal year 1955 are estimated at 1,807 
million dollars. This is 140 million dollars less than estimated expendi- 
tures in 1954. The decline results mainly from an expected reduction in 
public assistance grants to the States. 

Public assistance. — Under present law the Federal Government con- 
tributes, according to a statutory formula, to State expenditures for 
assistance payments to four groups of people in need — dependent chil- 
dren, the aged, the blind, and the totally disabled. With the expansion 
of the social security program, it is now feasible to recommend a new 
formula for public assistance grants which will more adequately recognize 
the varying financial needs of the several States and the appropriate role 
of the Federal Government in meeting these needs. The legislation which 
I am recommending would provide for a permanent formula to replace 
the present temporary increase in the Federal share which expires next 



142 



Dwight D. Eisenhower, ig$4 <| 14 

September 30. This new formula includes specific provision for a related 
reduction in Federal grants to States for old-age assistance as the im- 
proved old-age and survivors insurance program takes over an increasing 
share of the load. A transition period for adjusting both Federal and 
State procedures will be necessary. 

The decrease of nearly 100 million dollars in estimated expenditures for 
public assistance is made possible primarily by the proposed improvement 
in old-age and survivors insurance, which will reduce the need for sup- 
plementation by public assistance. 

Promotion of public health. — The budget provides for initiating our 
new program to help assure adequate medical and hospital services. The 
main elements of this program are : 

1. Establishment of a limited reinsurance service to encourage pri- 
vate and nonprofit health insurance organizations to offer broader 
health protection to more f amilies on a basis which would reinsure the 
special additional risks through premiums modeled on sound insurance 
principles. The capital for this program will be provided initially by 
the Federal Government and repaid from fees. 

2. A broadening of the present Federal grant-in-aid program for 
hospital construction to stimulate provision of diagnostic and treat- 
ment centers, rehabilitation facilities, nursing homes, and additional 
chronic disease hospitals, and to help finance State surveys of their 
needs for such facilities. 

The new program is estimated to require new obligational authority 
of 89 million dollars for the fiscal year 1955, of which 7 million dollars 
would be spent in that year. 

Budget expenditures for all public health programs under existing 
legislation, excluding medical care for military personnel and veterans, 
are estimated at 281 million dollars in the fiscal year 1955. About one- 
half of this amount will be for grants to universities and medical schools 
for medical research and training, for clinical and laboratory research 
conducted by the Federal Government, and for operation of the Public 
Health Service hospitals. The Public Health Service hospitals primarily 
furnish hospital and medical care to American merchant seamen. The 
budget provides funds to continue these special services while the Depart- 
ment of Health, Education, and Welfare has this program under review. 

Other expenditures will be for grants-in-aid to State governments and 



143 



<][ 14 Public Papers of the Presidents 

local communities for hospital construction, general health services, ma- 
ternal and child health, and the control of specific diseases, such as 
tuberculosis, cancer, mental illness, and heart ailments. With the major 
communicable diseases, including tuberculosis and venereal diseases, di- 
minishing in importance as public health problems, greater emphasis is 
being given to the chronic diseases which are becoming more prevalent. 

Vocational rehabilitation program. — The estimate for the present pro- 
gram of vocational rehabilitation reflects congressional action, taken in the 
1954 appropriation act, to require that a larger portion of the program 
be financed by the States. To revitalize the vocational rehabilitation pro- 
gram, I have recommended that we redefine our objectives so as to make 
possible a substantial increase in the number of persons rehabilitated. 

School lunch program. — Budget expenditures shown for the school 
lunch program for fiscal years prior to 1955 include funds for the pur- 
chase of commodities for distribution to the States, as well as for cash 
payments to the States. The amount recommended for 1955 will main- 
tain cash payments to the States at the same level as in 1954. In addi- 
tion, it is expected that larger Federal contributions of surplus agricultural 
commodities will be made to the program. These contributions are 
financed from a permanent appropriation to the Department of Agri- 
culture. As a result, total Federal aid for the school lunch program, 
including cash payments and surplus foods distributed under the program 
for the children are estimated at 218 million dollars in the fiscal year 
*955 compared with 206 million dollars in 1954. 

Railroad retirement. — As described earlier, the railroad retirement pro- 
gram is reported in this Budget in the same manner as the old-age and 
survivors insurance program and appears in the tables on that basis. 
The change does not affect the budget deficit. 

Trust funds. — The old-age and survivors insurance system is operated 
through a trust fund, which receives the payroll contributions and pays 
the benefits and administrative expenses. The tax rate rose to 2 percent 
each on employers and employees, effective January 1, 1954. My pro- 
posals for expanding and improving the program will raise receipts by 
an estimated 100 million dollars, benefit disbursements by 400 million 
dollars, and administrative expense by 8 million dollars in the fiscal year 

1955- 



144 



Dwight D. Eisenhower, ig$4 <f 14 

Social Security, Welfare, and Health 

(Trust funds) 

[Fiscal years. In millions] 

1953 1954 1955 , 

Fund and item actual estimated estimated 

Federal old-age and survivors insurance trust fund: 
Receipts: 
Present program: 

Appropriation from general receipts $4, 086 $4, 600 $5, 369 

Deposits by States 44 100 135 

Interest and other 387 442 477 

Proposed legislation 1 00 

Payments of benefits, construction, and adminis- 
trative expenses, and tax refunds: 

Present program — 2, 748 —3, 368 —3, 809 

Proposed legislation —408 

Net accumulation 1, 769 1, 774 1, 864 

Balance in fund at close of year 18, 364 20, 138 22, 002 



Railroad retirement fund: 
Receipts: 

Appropriation from general receipts 658 675 640 

Interest on investments 89 98 105 

Payments of benefits, salaries, and expenses "4^5 "~49° ~" "5 J 3 

Net accumulation 282 283 232 

Balance in fund at close of year 3, 183 3, 466 3, 698 

Federal employees' retirement funds: 
Receipts: 

Employee contributions 425 427 427 

Transfer from budget accounts and other 321 31 30 

Interest 215 227 236 

Payments of annuities and refunds, and expenses. . "363 —421 —448 

Net accumulation 598 264 245 

Balance in funds at close of year 5, 652 5, 916 6, 161 

The Government also operates separate retirement programs for rail- 
road workers, mentioned above, and for Federal civilian employees. 



145 



{$ 14 Public Papers of the Presidents 

HOUSING AND COMMUNITY DEVELOPMENT 

Good housing and the development of adequate community facilities 
are essential to the welfare of our people and to the stability and growth 
of our economy. Over the years the Federal Government has undertaken 
a wide variety of programs to assist our citizens in obtaining better housing. 
These programs, however, have been designed in the main to meet short- 
run emergencies or they have been developed piecemeal without a clear 
underlying policy. As a result, housing laws have become a patchwork 
which only experts can understand. Excessive reliance has been placed 
on direct participation by the Federal Government in areas where, prop- 
erly encouraged, local governments or private enterprise could have car- 
ried a larger share of the total responsibility. Different Federal programs 
have too often worked at cross-purposes, resulting in heavy expense with- 
out commensurate gains. In some instances, they have aggravated infla- 
tionary price increases instead of working toward lower housing cost for 
the ultimate consumer. Finally, the weaknesses in the organization of 
Federal housing activities have prevented us from realizing the full po- 
tentialities of present programs. 

At my request, the Advisory Committee on Housing Policies and Pro- 
grams, under the chairmanship of the Housing Administrator, has inten- 
sively examined all Federal housing activities. After consideration of its 
report and the Administrator's recommendations, I am proposing a series 
of changes which have three important objectives: First, they would 
reorient existing programs to emphasize the initiative of private enterprise 
and the role of local governments. Second, they would fill important 
gaps in the present housing program and at the same time eliminate nu- 
merous unnecessary and obsolete activities. Third, they would strengthen 
the administration of these programs to assure the most economical and 
effective use of Federal funds in improving the housing conditions of the 
Nation. 

To carry out these proposals I shall recommend major changes in legis- 
lative authority. I shall also submit a reorganization plan which will 
permit a more logical grouping of operating programs and give the Hous- 
ing Administrator appropriate authority to supervise these programs and' 
to determine major policies. Pending final decision on important details, 
estimates for these proposals are not specifically set forth in this budget. 
However, they will not have a significant effect on the Federal budget im 
the fiscal year 1955. 

146 



Dwight D. Eisenhower, IQ54 



f 14 



Most housing and community development programs involve both 
expenditures and receipts. In the fiscal year 1955 gross expenditures 
will total an estimated 1,903 million dollars, but receipts will exceed these 
expenditures by 277 million dollars. These net receipts compare with 



Housing and Community Development 
[Fiscal years. In millions] 



Program or agency 
Urban development and re- 
development 

Aids to private housing: 
Housing and Home Fi- 
nance Agency: 
Federal Housing Admin- 
istration 

Federal National Mort- 
gage Association 

Other 

Veterans' housing loans 
(Veterans Administra- 
tion) 

Treasury (Reconstruction 

Finance Corporation) . . . 

Farm housing (Department 

of Agriculture) 

Public Housing programs . . . 
General housing aids: 
Housing and Home Fi- 
nance Agency: 
College housing loans . . . 

Other 

Provision of community fa- 
cilities: 

Present programs 

Proposed advances for 
public works planning . . 

Defense housing 

Civil defense 

Disaster loans and relief. . . . 



Gross expenditures 



1953 
actual 



$25 



124 

645 
15 



92 

19 
1,027 



14 
5 



3i 

28 
78 
15 



!954 
esti- 
mated 

$68 



590 

16 



109 

17 
I, 222 



37 
3 



53 



31 
76 
i7 



*955 
esti- 
mated 

$97 



84 



956 

62 
3 

34 
3 

70 

7 



Net expenditures 



J 953 
actual 



$21 



94 -43 

488 379 
4 -25 



70 

-6 

19 



14 
5 



23 

28 
5* 



!954 
esti- 
mated 



62 
-38 



78 
-50 

17 



36 
3 



43 



3i 
74 
13 



Recom- 
mended new 
*955 obligational 
esti- authority 
mated for 1955 



$38 $48 



-30 -69 



-166 
-28 



44 



-234 



58 
3 



3 

1 

68 

3 



Total 2, 118 



549 



57 -277 



$4 



77 



86 



176 



2,357 i,903 

1 Compares with new obligational authority of 1,526 million dollars in 1953 and 628 
million dollars in 1954. 



147 



<| 14 Public Papers of the Presidents 

net expenditures of 549 million dollars in 1953 an< ^ ^ e revised estimate 
of net expenditures of 57 million dollars in 1954. The great improvement 
in the fiscal outlook over the 2 years reflects mainly the fact that pur- 
chases of mortgages by the Federal National Mortgage Association are 
declining and sales are rising. Increased private financing for the public 
housing program is also reducing the need for Federal outlays. 

Urban development and redevelopment. — Too many families in our 
cities today are living in substandard housing in deteriorating and slum 
neighborhoods. Since 1949 the Federal Government has been providing 
loans and grants to local governments for clearance and redevelopment 
of slum areas. Most local projects approved for Federal assistance are 
still in the planning stage, but by the end of the fiscal year 1955, clearance 
and redevelopment operations will be completed or underway for 180 
projects, compared to 43 projects begun by June 30, 1953. Net expendi- 
tures in 1955 are estimated to rise to 48 million dollars, of which 39 
million dollars represents grants to local communities to cover two-thirds 
of the net cost of projects which they have completed, or on which they 
have made substantial progress. 

This acceleration is encouraging, but clearing slums provides only a 
partial answer. Effective progress in redeveloping our cities will require 
(1) enlistment of greater local and private participation, (2) slum pre- 
vention as well as elimination, and (3) rehabilitation of rundown houses 
and neighborhoods. To help attain these objectives, I shall recommend 
legislation broadening the present program to authorize loans and grants 
for the conservation, rehabilitation, and renewal of neighborhood areas. 
Important changes should also be made in mortgage insurance authority 
of the Federal Housing Administration and in the low-rent public housing 
program, so that these programs can contribute more effectively to sound 
redevelopment. All of these aids should be fully coordinated and should 
be provided only in areas where the local community has adopted and 
is carrying out its part of an effective program to arrest urban decay. 

Federal Housing Administration. — As one of the major Federal aids to 
private housing, the Government insures mortgage loans made to finance 
housing construction or purchase. In the fiscal year 1955 under existing 
programs the construction of an estimated 190,000 new homes and the 
purchase of 126,000 existing homes will be financed with the aid of mort- 
gages insured by the Federal Housing Administration. Receipts from 

148 



Dwight D. Eisenhower, ig$4 <J 14 

premium income and other sources will exceed expenditures by an esti- 
mated 69 million dollars. 

To encourage the substitution of private financing for Federal outlays 
in the areas of greatest housing need, I shall urge the Congress to 
authorize two new mortgage insurance programs, as well as to liberalize 
certain existing programs. Specifically, the Federal Housing Administra- 
tion should now be authorized to insure private credit used for the re- 
habilitation of obsolete neighborhoods. It should also be given authority, 
on an experimental basis, to insure mortgages with small down payments 
and with the balance payable over a long period, to finance inexpensive 
homes for lower income families, particularly families displaced by re- 
habilitation and slum-clearance programs. Additional authority should 
be provided to adjust down payments and maturities for insured mort- 
gages to the extent consistent with overall economic policy. I shall also 
recommend simplification of the basic housing laws by the elimination of 
numerous inactive or unnecessary programs and by simplification of the 
structure and operations of the existing mortgage insurance funds. At 
the same time, measures will be recommended to strengthen the insurance 
funds. 

Federal National Mortgage Association. — The Federal National Mort- 
gage Association buys and sells mortgages insured by the Federal Housing 
Administration or guaranteed by the Veterans Administration. Gross 
expenditures are estimated at 488 million dollars in the fiscal year 1955, 
mainly for purchase of mortgages to finance military and defense housing 
under commitments made in earlier years. By 1955 the supply of private 
funds is expected to be adequate in most areas to provide financing for 
most other types of mortgages without Federal support. 

The policy of this administration is to sell the mortgages now held by 
the Association as rapidly as the mortgage market permits. Assuming 
satisfactory market conditions, receipts from these sales and from other 
sources in 1955 will exceed expenditures by an estimated 166 million 
dollars. This contrasts with net expenditures of 379 million dollars in 
1953, and 62 million dollars estimated for 1954. 

The legislation which I shall propose would provide authority to estab- 
lish, from time to time, maximum interest rates and other terms on insured 
and guaranteed mortgages with the objective of encouraging an adequate, 
but not excessive, supply of private mortgage funds for all parts of the 

51986—60 13 X 49 



<][ 14 Public Papers of the Presidents 

country. This proposal would make unnecessary in the future large Gov- 
ernment purchases of mortgages such as were required in the past, when- 
ever interest rates made such mortgages unattractive to private lenders. 
I shall also recommend the initiation of a new program, financed in large 
part from private funds, to furnish many of the secondary market facilities 
now provided by the Federal National Mortgage Association. 

Other aids to private housing, — Net expenditures for direct housing 
loans to veterans are estimated at 44 million dollars in the fiscal year 
1955, compared with 78 million dollars in 1954. Sales of loans to pri- 
vate investors are expected to rise as a result of the recent increase in the 
rate of interest on these loans. Under existing law, disbursements will 
be made during 1955 only on loans for which commitments are made 
prior to the expiration of lending authority on June 30, 1954. 

Authority for farm housing loans under title V of the Housing Act 
should be permitted to expire on June 30, 1954. Most of the essential 
needs can be met under other authorities and funds available to the 
Farmers' Home Administration. 

The loans of three other programs will be substantially liquidated in 
the fiscal year 1954. These include mortgages held by the Reconstruc- 
tion Finance Corporation, loans made by the Housing Administrator to 
the Alaska Housing Authority, and loans to various prefabricated housing 
manufacturers. 

Public housing, — As already indicated, I shall propose a new mortgage 
insurance program and other measures to encourage provision of private 
housing for low-income families. If these proposals prove effective, the 
need for future construction of low-rent public housing will be reduced. 
As an interim measure, however, the present public housing program 
should be continued at the level considered necessary to meet the needs 
of low-income families, particularly those displaced by slum-clearance 
and urban rehabilitation activities. Accordingly, my recommendations 
for the fiscal year 1955 in this budget would authorize construction of 
approximately 35,000 low-rent public housing units by local housing 
authorities, with the assistance of Federal loans and annual contribu- 
tions adequate to assure the low-rent character of these units. 

An estimated 956 million dollars in temporary Federal loans and other 
expenditures will be necessary to finance the operations of the low-rent 
and other public housing programs during the fiscal year 1955. Receipts 



150 



Dwight D. Eisenhower, ig$4 <| 14 

from private refinancing of local housing authority obligations and other 
sources are estimated to exceed these expenditures by 234 million dollars. 
All except 8 million dollars of the 77 million dollars in new obligational 
authority requested is for payment of annual contributions under con- 
tracts made in prior years. 

College housing. — Under the Housing Act of 1950 the Housing Ad- 
ministrator makes direct loans repayable over 40 years to finance student 
and faculty housing at colleges and universities. Net expenditures for 
such loans in 1955 will rise to 58 million dollars, largely under commit- 
ments made in prior years. By June 30, 1955, over 200 loans will have 
been approved. These will finance construction of housing accommoda- 
tions for about 50,000 students and faculty members. Wherever possible, 
private financing of these loans will be encouraged. 

Provision of community facilities. — The sharp reduction in net expendi- 
tures for provision of community facilities reflects mainly liquidation by 
the Treasury of loans to public agencies which were originally made by 
the Reconstruction Finance Corporation. No appropriations are being 
requested at this time for new loans to public agencies. 

To encourage State and local governments to prepare for possible 
future expansion in public works construction, I am recommending legis- 
lation to authorize Federal advances to them for planning future construc- 
tion. If the authority is granted, I shall request a supplemental appro- 
priation for the fiscal year 1954 of 10 million dollars, with estimated 
expenditures of 3 million dollars in 1955. 

Civil defense. — Expenditures for civil defense are included in housing 
and community development because of their community aspects, but 
the program is discussed in this message under national security. Federal 
expenditures for civil defense are estimated at 68 million dollars in the 
fiscal year 1955. 

EDUCATION AND GENERAL RESEARCH 

The citizen in a democracy has the opportunity and the obligation to 
participate constructively in the affairs of his community and his Nation. 
To the extent that the educational system provides our citizens with the 
opportunity for study and learning, the wiser will their decisions be, and 
the more they can contribute to our way of life. 

I do not underestimate the difficulties facing the States and communi- 
ties in attempting to solve the problems created by the great increase in 

151 



^ 14 Public Papers of the Presidents 

the number of children of school age, the shortage of qualified teachers, 
and the overcrowding of classrooms. The effort to overcome these diffi- 
culties strains the taxable resources of many communities. At the same 
time, I do not accept the simple remedy of Federal intervention. 

It is my intention to call a national conference on education, composed 
of educators and interested citizens, to be held after preparatory confer- 
ences in the States. This conference will study the facts about the Na- 
tion's educational problems and recommend sensible solutions. We can 
then proceed with confidence on a constructive and effective long-range 
program. Pending the outcome of these conferences and the development 
of our educational program, the Federal Government is providing assist- 
ance to those communities where school needs have been greatly increased 
by the activities of the Federal Government. 

Budget expenditures for education and general research activities in 
the fiscal year 1955 are estimated at 223 million dollars. This figure does 

Education and General Research 
[Fiscal years. In millions] 

Recom- 
Budget expenditures (net) mended new 

— — — obligational 

J 953 J 954 1955 authority 

Program or agency actual estimated estimated for 1955 

Promotion of education: 
Office of Education: 
Assistance for school construction and opera- 
tion in federally affected areas $201 $199 $ J 39 $99 

Vocational education 25 26 25 25 

Grants for colleges of agriculture and the 

mechanic arts 5 5 5 5 

Educational conference and other proposed 

legislation 1 1 (i) 

Other 3 3 3 3 

Educational aid to special groups 7 7 7 9 

Library and museum services 11 12 12 12 

General-purpose research: 

National Science Foundation 4 7 12 14 

Bureau of the Census 13 9 10 10 

National Bureau of Standards 8 9 9 8 

Total 277 278 223 2 185 

1 Less than 500,000 dollars. 

2 Compares with new obligational authority of 328 million dollars in 1953 and 217 
million dollars in 1954. 

J 52 



Dwight D. Eisenhower, 1954 ^ 14 

not include amounts spent for education and research in connection with 
the military, veterans', atomic energy, and certain other programs — 
which are classified in other sections of the budget. 

Sixty-two percent of the expenditures for education and general re- 
search in the fiscal year 1955 will be for grants to those local school 
districts that have been burdened by Federal activities. Another 1 3 per- 
cent will be for grants to States to help support their vocational education 
programs and their land-grant colleges. The Federal Government also 
assists Howard University and educational institutions for the deaf and 
blind, and it maintains major library and museum services at the National 
Capital. Expenditures shown for general-purpose research are for pro- 
grams of the Census Bureau, the National Bureau of Standards, and the 
National Science Foundation. 

Promotion of education. — Responsibility for education in the United 
States belongs to the State and local governments. The Federal Govern- 
ment has for many years provided financial assistance for land-grant 
colleges and some other educational activities. The Office of Education 
also disseminates information on educational trends and good practices. 
In recent years, the problems of education have been increasing in 
severity while this service has been reduced. My budget recommenda- 
tions provide for an expansion of this basic activity. 

The proposed national conference and preparatory State conferences 
will be most important steps toward obtaining effective nationwide recog- 
nition of these problems and toward recommending the best solutions 
and remedies. I recommend immediate enactment of the authorizing 
legislation and appropriations so that preparations for the individual State 
conferences as well as the national conference can begin at once. 

Within the appropriation recommended for the Office of Education in 
this budget is provision to expand the studies and consultations through 
which it promotes better practices in education. One problem to which 
particular attention will be given is the meager education received by 
children of migrant agricultural workers. Because these children move 
with their parents from State to State, the problem of providing for their 
education can be solved only through special effort on a cooperative 
interstate basis. 

In addition, I recommend that legislation be enacted which will enable 
the Office of Education to join its resources with those of State and local 



J 53 



<J 14 Public Papers of the Presidents 

agencies, universities, and other educational organizations for the con- 
duct of cooperative research, surveys, and demonstration projects. Legis- 
lation is necessary to make this cooperative effort effective. 

An advisory committee on education in the Office of the Secretary of 
Health, Education, and Welfare should be established by law. This rec- 
ommendation carries forward an objective of the reorganization plan 
under which the Department was created last year. This committee, 
composed of lay citizens, would identify educational problems of national 
concern to be studied by the Office of Education or by experts outside the 
Government, and would advise on action needed in the light of these 
studies. 

For these new activities directed toward the improvement and 
strengthening of our basic educational services, I am including 300,000 
dollars in the 1955 budget and recommending a 1954 supplemental 
appropriation of 2 million dollars. 

The last session of the Congress enacted legislation to extend tempo- 
rarily the laws under which assistance has been provided to local school 
districts burdened by Federal activities, and to improve the original laws 
so that they will provide the aid economically and to the areas most 
acutely affected. As a result of these improvements, the recommended 
appropriation of 59 million dollars for school-operating assistance in the 
fiscal year 1955 is 14 million dollars below the amount for 1954. This 
assistance is provided to more than 2,000 school districts, with enroll- 
ments of almost 5 million children, of whom almost 1 million qualify 
for assistance because their presence is related to Federal activities. 

The appropriation of 40 million dollars for school construction recom- 
mended for 1955, together with the 1954 appropriation of 70 million 
dollars, will provide for the most urgent classroom needs of the school 
districts eligible for this aid under the extended program. These funds 
are being used to help build almost 5,000 classrooms to serve 140,000 
children. 

Aid to special groups. — A construction program now underway at 
Howard University will provide facilities for double the enrollment in 
the schools of medicine, dentistry, pharmacy, and related health fields. 
This budget includes funds for the construction of the preclinical medical 
building, the last unit necessary to make this expanded enrollment pos- 
sible. Although the university is not limited to any group, it serves as 



154 



Dwight D. Eisenhower, 1954 ^ 14 

an important center of higher education for Negroes. The expanded 
enrollment, therefore, will help to alleviate the shortage of doctors, par- 
ticularly Negro doctors. 

Enrollment at the Columbia Institution for the Deaf has been increas- 
ing in recent years. Steps now being taken to enable the college to 
reach an accredited status in the near future include the provision of 
additional teachers and funds for the construction of a library-classroom 
building. One-third the cost of this building is being provided by con- 
tributions, primarily from former students. 

General research. — The National Science Foundation was created by 
the Congress in recognition of the need to formulate an adequate scientific 
research policy for the Nation. It is now engaged in intensive studies to 
that end, and is giving particular attention to the size and composition of 
the research activities of the Federal Government. 

The Congress, at its last session, amended the basic act of the Founda- 
tion, removing the ceiling on appropriations to this agency in order to 
permit steps toward increasing the responsibility of the Foundation for 
the general-purpose basic research of the Federal Government. Approxi- 
mately one-half of the 6-million-dollar increase I am recommending in 
the appropriation for the Foundation for the fiscal year 1955 is in reality 
a transfer of the responsibility and the financing for certain basic research 
programs from the Department of Defense to the National Science Foun- 
dation. The remainder of the increase is needed to expand basic research. 

Within the appropriation for the National Bureau of Standards, there 
is also provision for an increase in basic research. 

Additional basic research is needed to build up the fund of knowledge 
on which will be based the development of new crops for agriculture, new 
methods of safeguarding health, new tools for industry, and new weapons. 
A further important result is the training which basic research projects 
provide for graduate students in our universities. The number of trained 
scientists graduating each year falls short of the needs of our growing 
economy and is still declining. Enlargement of the research program and 
the related fellowship program will help counteract this trend. 

Funds are requested for the fiscal year 1955 to permit the Census 
Bureau to conduct a sample census of agriculture. This census will pro- 
vide essential data for current needs. 



J 55 



§ 14 



Public Papers of the Presidents 



AGRICULTURE AND AGRICULTURAL RESOURCES 

My recommendations for Federal agricultural programs are designed 
to help in the solution of pressing immediate problems such as the hard- 
ships arising from severe drought in major farm areas, the squeeze on live- 
stock producers resulting from lower cattle prices, and the disposal of 
excess stocks of wheat, cotton, vegetable oils, and dairy products which 
have been accumulated under provisions of price-support laws presently 
in force. They also take into account our long-run goals — promotion of 
a more stable and healthy farm economy, conservation and improvement 
of our basic agricultural resources, and provision of an adequate supply 
of food and fiber to match the needs of our increasing population. 



Agriculture and Agricultural Resources 
[Fiscal years. In millions] 

Recom- 

Gross expenditures Net expenditures mended 

new i). 

J 954 1955 !954 J 955 Ugationd 

*953 est i~ es ti- *953 es ^~ es ^~ authority 

Program or agency actual mated mated actual mated mated for 1955 

Stabilization of farm 
prices and farm 
income: 
Price support, sup- 
ply, and pur- 
chase programs 
(GGC): 
Existing pro- 
grams 1 $2,874 $2,832 $2,951 $1,831 $1,152 $1,105 

Proposed legisla- 
tion $ 1 , 750 

International Wheat 

Agreement 131 84 89 131 84 89 

Removal of surplus 
agricultural com- 
modities 82 205 233 82 205 233 180 

Sugar Act 63 65 65 63 65 65 60 

Federal crop insur- 
ance 27 37 33 5 9 3 6 

Agricultural adjust- 
ment programs ... 13 44 43 13 44 43 42 

1 Gross expenditures exclude private bank loans guaranteed by the Commodity Credit 
Corporation and net repayments thereof in the amount of 340 million dollars in 1953, 
1,564 million dollars in 1954, and 274 million dollars in 1955. 

156 



Dwight D. Eisenhower, ig$4 <$ 14 

Agriculture and Agricultural Resources — Continued 
[Fiscal years. In millions] 

Recom- 
Gross expenditures Net expenditures mended 

new ^_ 

!954 J 955 1954 1955 Ugational 

'953 estl " csti- 1953 esti- esti- authority 

Program or agency actual mated mated actual mated mated for 1955 

Financing farm owner- 
ship and opera- 
tion: 
Farm Credit Ad- 
ministration $1,936 $2,012 $2,164 —$83 — $1 $42 $25 

Farmers' Home Ad- 
ministration 177 193 168 177 193 168 168 

Disaster loans and 

emergency feed. . . 47 315 66 16 181 —17 

Financing rural elec- 
trification and rural 

telephones 239 250 232 239 250 232 137 

Agricultural land and 
water resources: 
Agricultural conser- 
vation program. . . 308 256 196 251 242 165 195 
Soil Conservation 
Service, flood 
prevention and 
other: 
Existing programs . 66 73 69 66 73 69 66 
Proposed legisla- 
tion 2 2 3 

Research and other 
agricultural services . 145 157 167 145 157 167 159 

Total 6,108 6,523 6,478 2,936 2,654 2,366 2 2, 791 

2 Compares with new obligational authority of 1,333 million dollars in 1953 and 2,302 
million dollars in 1954. 

The Secretary of Agriculture has recently reorganized the Department 
to increase administrative efficiency and to make more effective the 
various services the Department renders. Activities have been grouped 
into major units consisting of closely related programs, and provision has 
been made for greater emphasis on research and extension work directed 
to the improvement of farm products, reduction of production and 
marketing costs, and broadening of both the foreign and the domestic 
markets for farm products. 

Gross expenditures for agricultural programs in the fiscal year 1955 are 

51986—60 14 *57 



<| 14 Public Papers of the Presidents 

estimated at 6.5 billion dollars. Repayments of loans and the sale of 
commodities constitute most of the receipts of the public enterprises carry- 
ing on certain of these programs. These receipts are estimated at 4.1 
billion dollars. Hence, net budget expenditures in the fiscal year 1955 
are estimated at 2.4 billion dollars. This is 288 million dollars less than 
estimated net expenditures in 1954 and 570 million dollars less than in 

I953 ' 
Stabilization of farm prices and farm income. — Price support activities 

of the Commodity Credit Corporation, which account for nearly one-half 
of the estimated 1955 net budget expenditures for agriculture and agri- 
cultural resources, have dominated the trend of these expenditures in 
recent years. There is no better evidence of the tremendous budgetary 
significance of these activities than the increase of about 2.5 billion dollars 
during the past calendar year in commodities held by the Corporation and 
in price support loans. Furthermore, present prospects indicate that, 
under present law, large additional budgetary outlays will be required for 
these activities in the fiscal year 1955. It is clear, therefore, that a thor- 
ough reconsideration by the Congress of the provisions of existing price 
support laws is needed not only in the interest of farmers, but also in the 
national interest. 

In my recent special message, I recommended improvements in the 
price support legislation both to deal with the immediate problems arising 
from our large surpluses of agricultural commodities and to chart a course 
for the future that will more effectively achieve the goals of farm price 
supports. In most instances the reduction in budget expenditures which 
can be expected from improved and more flexible price support provisions 
will begin to be effective in the fiscal year 1956. 

It is impossible, because of many variable factors, to estimate with any 
certainty the expenditures under these programs. Based upon the best 
information now available, it appears that the gross price support expendi- 
tures of the Commodity Credit Corporation, which reflect mainly the 
loans made and commodities acquired during the year, will be 3 billion 
dollars in the fiscal year 1955. Anticipated receipts of 1.9 billion dollars 
from loan repayments and commodity sales will result in net expenditures 
in the fiscal year 1955 of 1.1 billion dollars. These net expenditures for 
price supports are expected to be 47 million dollars lower than in 1954, 
and 726 million dollars below the high level reached in 1953. 

158 



Dwight D. Eisenhower, 1954 <][ 14 

The reduction in expenditures from the 1953 level is due primarily to 
the application of marketing quotas on wheat and cotton and acreage 
allotments on corn which are intended to reduce production from the 
1954 crops. The estimates for the fiscal years 1954 and 1955 also reflect 
greater emphasis given to private financing of price support operations. 
This, coupled with the customary timing for loan maturities, will result 
in a substantial proportion of the price supports on the 1953 and 1954 
crops not becoming a Government expenditure until the loans held by 
private institutions mature, which will occur in 1955 and subsequent 
fiscal years. 

All obligations of the Commodity Credit Corporation, whether in the 
form of borrowing from the Treasury or commodity loans held by banks 
and guaranteed by the Corporation, constitute a use of the statutory bor- 
rowing authority of 6.75 billion dollars. With the large volume of com- 
modity loans and inventories now held and the increases expected in 
1954 and 1955, it is estimated that the obligations of the Corporation may 
exceed its present borrowing limit during the annual peak, probably 
February 1954, and rise to a still higher level in the fiscal year 1955. 
I shall recommend to the Congress early in this session a supplemental 
1954 estimate of 775 million dollars to restore borrowing authority to the 
Corporation, through cancellation of notes owed the Treasury, in an 
amount equal to the sum of the Corporation's capital impairment as of 
June 30, 1953, the advances during 1953 for control of foot-and-mouth 
disease, and the cost of operations under the International Wheat Agree- 
ment. This note cancellation will require immediate action by the Con- 
gress to insure that the Corporation can fulfill its statutory responsibilities 
under the present price support program. 

I shall also recommend legislation to increase the borrowing authority 
of the Corporation by 1.75 billion dollars, effective July 1, 1954. This 
recommended increase in borrowing authority takes into account the in- 
creased commitments by the Government which would result from the 
proposed increase in the minimum 1954 cotton acreage allotment. While 
these commitments will be made in the fiscal year 1955, the cash expendi- 
tures by the Commodity Credit Corporation will not occur until 1956. 

The recommended new obligational authority for the Corporation will 
meet the minimum foreseeable needs, provided steps are taken through 
new legislation to place our farm price support program on a sound basis 



159 



<][ 14 Public Papers of the Presidents 

for the future. A further request for additional borrowing authority may 
be necessary at a later date if conditions result in this amount being in- 
sufficient to provide for the commitments and expenditures required dur- 
ing the period the presently applicable price support provisions remain in 
effect. 

Under the revised International Wheat Agreement, which became effec- 
tive in the fiscal year 1954, our export quota for wheat has been reduced 
because of the withdrawal of Great Britain from the Agreement. More- 
over, the maximum export price has been raised from $1.80 to $2.05 per 
bushel. As a result, expenditures under this program are expected to be 
only about two-thirds as much as in 1953 when our guaranteed export 
quota was larger and the spread between the domestic price and the 
export price of wheat was wider. While expenditures under the Wheat 
Agreement will be less in 1955 than in earlier years, the loss of wheat ex- 
ports may increase wheat surpluses and thus cause larger outlays by the 
Commodity Credit Corporation under the price support program than 
would otherwise occur. 

The permanent appropriation for the removal of surplus agricultural 
commodities, enacted in 1935, is equivalent to 30 percent of the customs 
receipts for the preceding calendar year. In the fiscal year 1955 there 
will be available from this authority a carryover of 241 million dollars from 
prior years plus 180 million dollars of new authorization. This total of 
421 million dollars compares with estimated expenditures in 1955 of 233 
million dollars. Of this amount 1 50 million dollars of surplus commodi- 
ties purchased under this program is estimated to be distributed to the 
national school lunch program in 1955, as compared with 123 million 
dollars in 1954 and 52 million dollars in 1953. This permanent appro- 
priation will be used also to strengthen the work being done by the Foreign 
Agricultural Service in cooperation with the Department of State in de- 
veloping new foreign markets for our agricultural products. 

Financing farm ownership and operation. — The Farm Credit Act of 
1953, enacted by the last session of the Congress, restored the Farm Credit 
Administration to an independent status under the supervision of the 
Federal Farm Credit Board created by that legislation. It is the policy 
of this administration, through the Farm Credit Administration, to 
strengthen cooperative credit services on the basis of sound business-credit 
standards, and to increase farmer participation in the ownership and con- 
trol of the Federal farm credit system to the end that the investment of 

160 



Dwight D. Eisenhower, ig54 ^ 14 

the United States in the federally sponsored agricultural credit institutions 
may be retired within a reasonable time. 

The cooperative credit institutions supervised by the Farm Credit Ad- 
ministration make both long- and short-term loans to farmers and to 
farmers' cooperatives. Short-term loans by the production credit associa- 
tions are financed largely through the federally owned intermediate credit 
banks. Gross expenditures of these banks, which reflect mainly new 
loans, are expected to be approximately offset by receipts from loan repay- 
ments in the fiscal year 1955. 

Direct loans to farmers by the Farmers' Home Administration, pri- 
marily for farm ownership, production and subsistence, and water facil- 
ities, are intended to supplement the credit services provided by private 
and cooperative credit agencies. The principal purpose of these loans 
is to help borrowers improve their financial situation so that they can 
qualify for private or cooperative credit. In the fiscal year 1955, the 
regular loan program will be continued at about the same level as that 
provided in 1954. Collections of principal and interest on old loans, 
which approximately equal new loans made, go directly into miscella- 
neous receipts of the Treasury and are not deducted from budget 
expenditures of this program. 

Existing legislation does not provide adequately for the financing of 
group water facilities and related small water supply projects. Proposals 
for legislation will be submitted at a later date to broaden the geo- 
graphical area within which water facilities loans may be made, and to 
increase the loan limit. 

The volume of special disaster loans to farmers increased sharply 
during the first half of the fiscal year 1954. This increase resulted 
mainly from loans made to stockmen and other farmers in drought- 
stricken areas to help them finance feed purchases and thereby avoid 
drastic liquidation of their livestock holdings. The Federal Government 
also contributed emergency feed from stocks acquired in price support 
operations and absorbed a part of the cost of making other feed available 
to farmers in these areas. 

As of December 18, 1953, the Federal Government under this pro- 
gram had committed 52 million dollars to supply 1.4 million tons of 
feed concentrates and over 5 million dollars to cover the Federal Gov- 
ernment's share of the cost of the hay program which is administered 
by the States. A recommendation will be made to the Congress shortly 

161 



<| 14 Public Papers of the Presidents 

to assure a continuation of advances to States for assistance in distribut- 
ing hay to farmers and ranchers in the drought areas. In addition, meat 
purchases of 86 million dollars by the Government up to December 16, 
1953, financed from the permanent appropriation for removal of surplus 
agricultural commodities, have resulted in the removal of about 780,000 
head of cattle from the market. The disaster loan program, along with 
provision of emergency feed and purchases of meat by the Department 
of Agriculture, supported livestock prices at a time when the market 
otherwise would have been more depressed by forced liquidation of live- 
stock. The need for new loans and other emergency assistance is expected 
to be greatly reduced by the spring of 1954, and collections during the 
fiscal year 1955 on disaster loans made in prior years should exceed new 
loans made. 

Financing rural electrification and rural telephones. — The need for 
rural electrification loans has become less as the proportion of our farms 
that are electrified has increased. About 91 percent of our farms are 
now electrified. Only about 42 percent of our farms, however, have 
telephone service. The budget recommendations for these two pro- 
grams in the fiscal year 1955 provide loan funds sufficient to finance 
substantial further expansion of electrification and telephone services in 
rural areas. In order to reduce the need for future Federal aid, this 
administration also is exploring possible arrangements whereby more 
private capital can be made available to finance telephone services in 
rural areas. 

Agricultural land and water resources. — The need for greater emphasis 
on conservation and development of our agricultural land and water 
resources was set forth in my special message to the Congress on this matter 
on July 31, 1953. The budget estimates provide for 66 million dollars 
under existing legislation to continue and improve the technical and ad- 
visory services of the Soil Conservation Service and for related activities. 

Additional work should be undertaken with a view to strengthening 
our vital upstream conservation activities. Farmers increasingly realize 
that it is in their own interest to do more of this work. Because the Nation 
as well as farmers and local communities receive benefits, this work should 
be a joint responsibility. Existing law, however, does not provide an 
adequate basis for cooperative upstream development. The 1955 budget, 
therefore, includes 3 million dollars under proposed legislation to permit 
the Department of Agriculture to cooperate with State and local agencies 

162 



Dwight D. Eisenhower, ig$4 <R 14 

in the planning and installation on small watersheds of the necessary pro- 
tective facilities, and to provide for better conservation, development, 
utilization, and disposal of water. This will supplement the 1 1 million 
dollars to be spent under existing law for watershed protection and flood 
prevention projects. 

In conformance with the forward authorization for the 1954 crop year 
enacted in the 1954 appropriation act, the budget provides 195 million 
dollars for the agricultural conservation payment program in the fiscal 
year 1955. A proposed revision of this program will be recommended 
to the Congress. The proposal involves no expenditures in the fiscal year 

1955- 

Research and other agricultural services. — To achieve a more efficient 
and stable agriculture and to provide for the future needs of a growing 
population, increased attention must be given to research and educational 
work on problems of agricultural production, soil conservation, and mar- 
keting. The 1955 budget includes 112 million dollars for research and 
extension work, an increase of 18 million dollars over the estimate for 
the fiscal year 1954. This work is done in cooperation with State and 
private agencies. The budget recommendations will provide for a needed 
expansion of research on marketing and utilization of farm products and 
of other scientific research conducted by Federal agencies, and increased 
payments to States for related cooperative research programs. This bud- 
get also will provide greater Federal contributions to the Federal-State 
extension program. 

The recommended increase in Federal appropriations for cooperative 
research and extension work is accompanied by a recommended decrease 
in appropriations for certain regulatory activities carried on jointly with 
the States. The budget contemplates elimination of Federal contribu- 
tions for tuberculosis and brucellosis indemnity payments and curtailment 
of Federal quarantine and similar operations in a number of insect and 
plant disease programs. The shift in responsibility for continuation of 
these programs is in accordance with the policy of this administration 
that the Federal Government should withdraw from activities which we 
believe can be more appropriately carried on by private enterprise or by 
State and local governments. 

A strengthening of agricultural research and the wide dissemination of 
improved techniques through extension work will contribute to the effi- 
ciency of farm production and marketing, benefiting both producers and 

163 



€|f 14, Public Papers of the Presidents 

consumers. This will provide the solid foundation for a more prosperous 
and stable agriculture and ultimately for less reliance on Government price 
support and other financial aids. 

NATURAL RESOURCES 

My recommendations for the natural resources programs of the Govern- 
ment are based on a reappraisal of the responsibility which the Federal 
Government should exercise in the development of our resources. At the 
same time, the recommendations have been made with due regard to our 
overall fiscal position. To keep the Federal financial burden at a mini- 
mum while defense expenditures remain high, some improvements and 
program expansions which might be desirable have not been included in 
this budget. Emphasis has been given to careful planning to insure sound 
development of our natural resources. Such development should be 
timed, whenever possible, to assist in leveling off peaks and valleys in our 
economic life. 

A strong program of resource conservation and development is neces- 
sary to support the progressively expanding demands of our increasing 
population and to contribute to the economic growth and security of the 
Nation. Achievement of this goal requires a combined effort on the part 
of States and local communities, citizens, and the Federal Government. 
To the greatest extent possible, the responsibilitity for resource develop- 
ment, and its cost, should be borne by those who receive the benefits. In 
many instances private interests or State and local governments can best 
carry on the needed programs. In other instances Federal participation 
or initiative may be necessary to safeguard the public interest and to 
accomplish broad national objectives. 

Estimated net expenditures of 1.1 billion dollars in the fiscal year 1955 
will provide for the management and protection of the resources which 
belong to all the people and which are under the jurisdiction of the Fed- 
eral Government. About three-fourths of this total will be for flood con- 
trol, irrigation, power, and multiple-purpose river basin development. 
The remainder will be spent on the management, development, and 
protection of our national forests, parks, and other public lands, and for 
mineral and fish and wildlife resources and basic surveys. Activities to 
advance the peacetime applications of atomic energy, which will be of 
increasing significance in 1955, are discussed with other activities of the 
Atomic Energy Commission in the national security section of this message. 

164 



Dwight D. Eisenhower, ig$4 



<& 14 



Natural Resources 

[Fiscal years. In millions] 

Gross expenditures Net expenditures Recom- 

mended new 

J 954 !955 J 954 *955 obligational 

1953 estl " estl ' *953 esti- esti- authority 
Program or agency actual mated mated actual mated mated for 1955 

Land and water resources: 
Corps of Engineers: Flood 
control and multiple- 
purpose projects: 

Existing program $579 $416 $361 $579 $416 $361 $342 

Proposed legislation: Aid 
for non-Federal de- 
velopment of water re- 
sources 5 5 5 

Department of the Interior: 
Bureau of Reclamation: 
Irrigation and mul- 
tiple-purpose p r oj - 
ects: 

Existing program 235 182 167 231 180 164 160 

Proposed legislation: 

Federal projects 0) (i) (1) 

Proposed legislation: 
Aid for non-Federal 
development of water 

resources 5 5 5 

Power transmission agen- 
cies 65 64 53 65 64 53 39 

Indian lands resources . . 32 36 35 29 35 34 27 
Bureau of Land Manage- 
ment and other 14 16 15 14 16 15 16 

Tennessee Valley Author- 
ity 3*5 366 439 184 195 212 142 

Department of State 15 9 5 15 9 5 2 

Federal Power Commis- 
sion 4 4 4 4 4 4 4 

Forest resources 107 116 no 1 07 116 no 1 08 

Mineral resources 41 41 39 38 38 36 36 

Fish and wildlife resources .. . 34 37 38 34 37 38 36 
Recreational use of re- 
sources 30 34 34 30 34 34 29 

General resource surveys 
and other 28 28 27 28 28 27 27 

Total 1,499 J > 349 i»337 x > 35 8 1, l l* 1, 103 2 97^ 

1 Less than 500,000 dollars. 

2 Compares with new obligational authority of 1,396 million dollars in 1953, and 1,026 
million dollars in 1954. 

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<][ 14 Public Papers of the Presidents 

Land and water resources. — Under my recommendations in this 
budget, the Federal Government will spend an estimated 858 million 
dollars for the conservation and development of land and water resources 
in the fiscal year 1955. A major part of this represents investment in 
assets which will yield benefits long into the future. 

This administration is developing a sound and uniform national policy 
for the conservation, improvement, and use of water and related land 
resources, designed to assure that future programs are not only responsive 
to local requirements but are consistent as well with the needs of the 
Nation as a whole. As a step in this direction, a statement of principles 
has been issued on the generation, transmission, and disposal of electric 
power. Standards for the justification of proposed water resources proj- 
ects are currently being reviewed by the executive branch. Special at- 
tention is being given to requirements for the sharing of costs among 
private beneficiaries, State and local groups, and the Federal Government. 
Also, the Congress has established commissions to examine resource pro- 
grams, as well as other Federal activities, and to make recommendations 
with respect to them. As the various studies are completed, I shall make 
specific legislative recommendations to the Congress. 

This administration has also taken and will continue to take steps to 
encourage non-Federal interests to formulate plans and undertake de- 
velopment of water resources, including hydroelectric power, which are 
consonant with the best use of the natural resources of the area. An out- 
standing example of cooperation between various levels of government — 
State, Federal, and international — in multiple-purpose development of a 
resource is the proposal for the development of the St. Lawrence River. 
It would also be in the public interest for construction to be undertaken, 
on a non-Federal basis, to realize the power potential of the Niagara 
Falls site. 

Basic resource surveys and advance engineering and design activities 
will be carried on in 1955 at rates necessary to provide for further develop- 
ment of our resources. Federal activities in projects or plans will not imply 
any exclusive reservation of such projects to Federal construction or 
financing or preclude local participation in them. Needed projects to 
be constructed by the Federal Government may include those which, 
because of size and complexity, are beyond the means of local, public or 
private enterprise. 

My budget recommendations also provide for the continuation of river 

166 



Dwight D. Eisenhower, IQ54 ISJi 14 

basin work now underway. Less urgent features of the projects, not 
required for operation of going or completed units, will be deferred. 
Budget expenditures of the Bureau of Reclamation and the Corps of Engi- 
neers include an estimated 443 million dollars in the fiscal year 1955 to 
carry on construction of about 160 river basin development projects. A 
substantial amount of these expenditures is for multiple-purpose develop- 
ment for irrigation, flood control, navigation, and hydroelectric power. 
During the fiscal year 1955, 20 projects will be completed or substantially 
completed, including 9 flood control projects, 5 irrigation projects, and 6 
multiple-purpose projects with power facilities. 

In furtherance of the policies of this administration, I am recommend- 
ing the starting of some new projects or new units of existing projects by 
the Corps of Engineers and the Bureau of Reclamation, as well as the 
resumption of some previously deferred projects. The budget recom- 
mends commencing work on 6 irrigation and water supply projects, 8 
local flood prevention projects, and 8 navigation projects, one of which 
I recommend starting in the fiscal year 1954 w ^h supplemental funds. 
In addition, it provides for resumption of work on 2 flood control reservoirs 
and 2 river and harbor improvements. This work is estimated to cost a 
total of 184 million dollars, with expenditures of 20 million dollars sched- 
uled for the fiscal year 1955. Together with the St. Lawrence Seaway, 
this totals to 23 new projects and 4 resumptions in the budget. The navi- 
gation projects, including the St. Lawrence Seaway, are discussed in this 
message with the transportation and communication programs. Recom- 
mendations for related watershed protection and flood prevention activi- 
ties of the Department of Agriculture are discussed in the section on 
agriculture and agricultural resources. 

The new local flood prevention works, to be constructed by the Corps 
of Engineers, are relatively small projects and can be completed within 
3 years. The detailed plans preliminary to construction have been com- 
pleted. Each of the projects has a favorable ratio of benefits to costs and 
provides for a reasonable degree of financial cooperation by local interests. 
Resumption of work is proposed on 2 flood control reservoirs, each of 
which is about one-third completed. 

The new projects recommended for the Bureau of Reclamation include 
3 projects already authorized and 2 projects under legislation I am pro- 
posing. Commencement of work is also recommended on a new pumping 
unit of an irrigation project now under construction. These are small 

167 



<J 14. Public Papers of the Presidents 

or intermediate-sized developments. In their selection, consideration has 
been given to the benefits of supplemental irrigation for established farm- 
ing areas, to more intensive and beneficial use of existing water supplies, 
and to the ability of the water users to make a reasonable repayment of 
the investment. In the case of one of the projects which requires author- 
ization, I have recommended to the Congress that provision be made in 
the legislation for repayment within 50 years of all reimbursable costs, 
and that construction of the project be made contingent on the assump- 
tion by the State, together with local organizations, of financial respon- 
sibility for reimbursable costs beyond the ability of the water users to repay. 
This principle is in line with the policy of this administration that, to the 
greatest extent possible, the cost of these developments should be borne 
by those who receive the benefits. 

In accordance with this administration's policy of encouraging State 
and local undertakings, there is included in the budget an initial appro- 
priation of 10 million dollars under proposed legislation to enable the 
Corps of Engineers and the Bureau of Reclamation to cooperate with 
States, local governments, or private groups in the development of their 
water resources. It is thought that there are projects on which State and 
local interests could go forward with some Federal assistance. Such assist- 
ance should be provided on an equitable financial basis and should be 
limited to projects from which benefits would accrue to the general public. 

The power policy of this administration recognizes the willingness of 
State and local groups to participate in providing additional power facili- 
ties. Where the necessary transmission facilities are not being provided 
on reasonable terms by other public or private agencies, the Department 
of the Interior will construct and operate transmission lines that are eco- 
nomically feasible and are necessary for proper interconnection and 
operation of Federal generation plants, and those that are required to 
carry power to load centers within economic transmission distances. As a 
result of this policy and the approaching completion of transmission sys- 
tems required for carrying out arrangements for marketing power from 
Federal projects under construction, combined expenditures of the Bonne- 
ville, Southeastern, and Southwestern Power Administrations in the fiscal 
year 1955 will be less than in 1954. 

Under the Federal Power Act, licensees of hydroelectric projects which 
benefit from headwater impoundments of other projects, either public or 

168 



Dwight D. Eisenhower, IQ54 <][ 14 

private, must make annual payments to the upstream developer in ac- 
cordance with benefits received. The Federal Government is not required 
to make similar payments when Federal projects derive such benefits. In 
simple equity, this should be done. I recommend enactment of legislation 
which would require such Federal payments. 

Although no appropriations are included in the 1955 budget for new 
power generation units by the Tennessee Valley Authority, expenditures 
will increase for continuation of construction of power plants presently 
underway, and for operation of power plants after they are completed. 
Expenses for operation of flood control, navigation, and fertilizer facili- 
ties will continue at about the 1954 level. Expenditures for power and 
fertilizer operations are more than offset by the income from sales. In 
order to provide, with appropriate operating reserves, for reasonable 
growth in industrial, municipal, and cooperative power loads in the area 
through the calendar year 1957, arrangements are being made to reduce, 
by the fall of 1957, existing commitments of the Tennessee Valley Author- 
ity to the Atomic Energy Commission by 500,000 to 600,000 kilowatts. 
This would release the equivalent amount of Tennessee Valley Authority 
generating capacity to meet increased load requirements of other con- 
sumers in the power system and at the same time eliminate the need for 
appropriating funds from the Treasury to finance additional generating 
units. In the event, however, that negotiations for furnishing these load 
requirements for the Atomic Energy Commission from other sources are 
not consummated as contemplated or new defense loads develop, the 
question of starting additional generating units by the Tennessee Valley 
Authority will be reconsidered. 

In order to carry out the power policy of this administration which 
requires an interest charge on the Federal investment in power facilities 
to reimburse the Treasury for the cost of providing funds, a proposal is 
being developed for submission to the Congress to provide that an ade- 
quate rate of interest be paid to the Treasury on public funds invested in 
power facilities of the Tennessee Valley Authority. For this purpose, I 
have requested that a study be undertaken by the agency in cooperation 
with other executive agencies. 

National forests and other public lands, — The development and use 
of our public lands should be on a businesslike basis with due regard for 
proper conservation and for the rights and interests of States and private 

169 



ffl 14 Public Papers of the Presidents 

citizens. Programs of the Forest Service and the Bureau of Land Man- 
agement provide for the management, development, and increasing use 
of the valuable timber, forage, and mineral resources of the national for- 
ests and public lands, and also for the protection and use of these lands 
for their strategic watershed and other public values. Receipts from the 
use of these lands, estimated at 154 million dollars in the fiscal year 1955, 
are shared with the States and counties in which the lands are located. 

The budget contemplates the withdrawal of Federal financial partici- 
pation in certain phases of State and private forestry cooperation, with 
greater assumption of responsibility by local interests. At the same time, 
emphasis will be placed by the Forest Service on cooperative research. 
Increased funds are recommended to complete construction of access 
roads needed to salvage the timber in the beetle-infested and windblown 
forest areas of Washington and Oregon. 

Expenditures for the management and protection of our national parks, 
monuments, and historic sites will be somewhat above the current-year 
level, so as to provide for improved services to the increasing number of 
visitors. This increase is largely offset by a reduction in expenditures for 
construction. Federal aid to States for fish and wildlife restoration, fi- 
nanced by special taxes on fishing and hunting goods, will increase. 

As a part of the administration's objective of charging reasonable fees 
for services or facilities provided by the Government for private individuals 
or groups, consideration is being given to adjustments which would result 
in increased receipts to the National Park Service, thus returning to the 
Treasury a larger amount of the costs of maintaining and operating our 
national parks. 

Expenditures on Indian land resources will provide for soil conservation 
work and further development of water supplies and timber and range 
resources necessary for their economic development. In the fiscal year 
1955 appropriations will be reduced from their level in 1954 as a result 
of the slowing down or deferring of some construction projects — which 
will be accomplished without jeopardizing the overall objectives of the 
Indian programs. 

Mineral resources. — I have recently appointed a Cabinet committee 
to establish guidelines for the prudent use and development of domestic 
mineral resources and to assure our growing economy of necessary mineral 
supplies in time of emergency. The report of this committee, expected 

170 



Dwight D. Eisenhower, IQ54 ^ 14 

within the next few weeks, should be helpful in resolving many of the 
problems facing the mineral producers of the Nation. 

The Bureau of Mines will continue its basic research programs in the 
fiscal year 1955 for the aid of private development of resources, with 
emphasis on expanding the utilization of minerals in abundant supply 
and the development of suitable substitutes for materials in short supply. 
The Federal Government will also encourage private development by 
undertaking basic resource surveys, providing incentives for exploration 
of high priority minerals, and assisting in the development of oil and gas 
reserves of the Outer Continental Shelf. 

TRANSPORTATION AND COMMUNICATION 

Efficient transportation and communication services are essential to 
the national economy and the national security. At my request, an inten- 
sive reappraisal of Federal responsibilities is underway both by the regular 
departments and agencies and by special commissions. The general prin- 
ciples guiding this reappraisal are that the national interest will usually 
be served best by a privately owned and operated industry, which is sup- 
ported by a minimum of Federal funds or Federal basic facilities and 
services operated at the lowest feasible cost and financed, where possible, 
by charges levied on the users of the services. 

In the fiscal year 1955 net budget expenditures for transportation and 
communication programs will decline to an estimated 1,418 million dol- 
lars, compared with 1,856 million dollars in 1954 and 2,077 million dollars 
actually expended in 1953. The largest decrease is the anticipated re- 
duction of the postal deficit by operating savings and by increased postal 
rates. Sizable reductions have also been made in other large programs. 

New legislative authority is required to move more rapidly toward 
putting the postal service on a self-supporting basis and to establish a 
corporation to operate the Washington National Airport. I am also 
recommending legislation to permit us to participate in the St. Lawrence 
Seaway, and to continue and strengthen the Federal-aid highway program. 

Promotion of aviation. — The rapid development of aviation has been 
materially assisted by numerous services and by direct financial assistance 
provided by the Federal Government. These aids have included basic 
scientific research in aeronautics, establishment and operation of airways, 
enforcement of safety regulations, assistance in construction of airports, 

171 



<][ 14 Public Papers of the Presidents 

Transportation and Communication 

[Fiscal years. In millions] 

Gross expenditures Net expenditures Recom- 

. mended new 

J 954 J 955 J 954 r 955 obligational 

1953 esti- esti- J 953 esti- esti- authority 

Program or agency actual mated mated actual mated mated for 1955 

Promotion of aviation: 
Civil Aeronautics Adminis- 
tration $161 $146 $121 $161 $146 $121 $104 

Civil Aeronautics Board 

(subsidies to air carriers) 54 80 54 80 73 

National Advisory Com- 
mittee for Aeronautics. . 78 91 77 78 91 77 58 
Promotion of merchant ma- 
rine: 
Maritime Administration. 358 262 156 235 196 107 102 
Inland Waterways Corpo- 
ration 12 1 0) — 2 — 1 

Provision of navigation aids 
and facilities: 

Coast Guard 230 236 190 230 236 190 181 

Corps of Engineers: 

Present programs 113 1 02 1 06 113 1 02 1 06 1 03 

Proposed legislation (St. 

Lawrence Seaway) 6 6 1 05 

Panama Canal Company . . 1 06 1 02 99 —10 — 2 — 1 

Provision of highways: 
Bureau of Public Roads: 

Present programs 550 592 582 550 592 582 10 

Proposed legislation 598 

Alaska roads and other .. . 22 20 17 22 20 17 13 

Postal service: 

Present program 2, 775 2, 775 2, 775 659 440 330 329 

Proposed increase in postal 

rates — 240 — 240 

Regulation of transportation. 17 16 16 17 16 16 16 
Other services to transporta- 
tion 45 42 45 15—40 21 22 

Regulation of communica- 
tion 7 7 7 7 7 7 8 

Total 4,474 4,446 4,277 2,077 1,856 1,418 21,482 

1 Less than 500,000 dollars. 

2 Compares with new obligational authority of 1,925 million dollars in 1953 and 1,756 
million dollars in 1954. 



172 



Dwight D. Eisenhower, IQ54 ^ 14 

and direct provision of subsidies to airmail carriers. While need for some 
aid continues, the increasing maturity of this industry requires thorough 
reevaluation of the promotional responsibilities of the Federal Govern- 
ment. At my request, the Air Coordinating Committee is now undertak- 
ing a comprehensive review of our aviation policy. 

With growing maturity, the airline and aircraft manufacturing indus- 
tries should assume increased responsibility for air safety. Improved pro- 
cedures of traffic control, elimination of older-type facilities, and 
curtailment of less essential services should permit an expanded volume 
of air traffic to be handled safely with reduced Federal expenditures for 
operating programs. Expenditures for construction programs are likewise 
declining. 

As a result of these developments, expenditures of the Civil Aeronautics 
Administration can be reduced and we can still fulfill the basic Federal 
responsibilities for providing air-navigation aids, traffic control, and safety 
services. Budget expenditures in the fiscal year 1955 are estimated to be 
25 million dollars less than in 1954, and 40 million dollars less than in 

l 953- 

I am recommending appropriations for new airways facilities amount- 
ing to 5 million dollars, which will permit further progress on the modern 
very high frequency system of navigation aids and certain other improve- 
ments. Pending completion of current studies, no provision is made in the 
budget for additional appropriations for grants to State and local govern- 
mental units for airport construction. 

In addition, the time has come when consideration should be given to 
requiring the users of the airways facilities to share the costs of providing 
this service. 

Reorganization Plan No. 10 of 1953, transferring the subsidy portion 
of airmail payments from the Postmaster General to the Civil Aeronautics 
Board, makes it possible for the first time for Congress to consider this 
major aid to aviation as a separate budget item. For both 1 954 and 1 955, 
these subsidy payments are estimated at approximately 80 million dollars, 
based primarily on existing route patterns and mail rates. The subsidy 
expenditures were included in the Post Office Department through Sep- 
tember 1953. The separation of compensatory mail payments, which 
remain in the Post Office, from subsidy payments is a necessary first step 
toward a more effective review of expenditures for civil aviation as well 
as for the postal service. 

i73 



<][ 14 Public Papers of the Presidents 

The scientific research in aeronautics conducted by the National Ad- 
visory Committee for Aeronautics will continue in the fiscal year 1955 
to be devoted almost entirely to support of the military programs for the 
development of new and improved aircraft, guided missiles, and propul- 
sion systems. The budget provides for a strong continuing program in 
aeronautical research and for initial operation of the three new large super- 
sonic wind tunnels now under construction. Nevertheless, expenditures 
will be 14 million dollars less than in the fiscal year 1954 because of the 
sharp decrease in construction expenditures as projects are completed. 
The superior performance of our jet aircraft in Korea and the even better 
performance of newer types now in production has been possible because 
of the basic research and wind-tunnel testing done in previous years. 
Much of the work will also contribute eventually to improving the per- 
formance, safety, and comfort of civil aircraft. Future possibilities are 
hinted by the recent performance of our research airplanes, one of which 
attained a speed of over 1,600 miles per hour — two and one-half times 
the speed of sound. 

Merchant marine, — Federal aid to the merchant marine consists pri- 
marily of operating and construction subsidies to offset the differences 
between American and foreign costs. This program is designed to pro- 
mote a healthy merchant marine as a nucleus capable of rapid expansion 
to meet national-defense needs. The sharp reduction in expenditures 
will result almost entirely from virtual completion of construction of the 
35 Mariner-class vessels authorized in 1 95 1 . 

Expenditures for operating subsidies have been rising steadily, and in 
1955 will account for 85 of the 107 million dollars in net expenditures for 
maritime programs. These increases reflect not only faster payment of 
earlier obligations but also higher levels of subsidy resulting from the 
increased operating costs in recent years. The size and rising trend of 
expenditures for these subsidies make it essential to consider legislative 
changes to provide for more effective budgetary control consistent with 
the basic objectives of the maritime program. 

Operating programs of the Maritime Administration show a downward 
trend. By the end of the fiscal year 1955 the emergency operation of 
Government-owned cargo vessels will be reduced to about 47, compared 
to a high of 538 in 1 952. Ships withdrawn from operation are being main- 
tained in the national-defense reserve fleet to meet future emergency 
needs. 

174 



Dwight D. Eisenhower, ig54 ^f 14 

The physical assets of the Inland Waterways Corporation were sold as 
of July 1, 1953, in accordance with this administration's policy of remov- 
ing the Federal Government from an activity which is appropriately 
private. The terms of sale fully protect the public interest in the con- 
tinuance of the common-carrier barge service along the Mississippi and 
Warrior Rivers. 

Navigation aids and facilities. — The expanded search-and-rescue facili- 
ties of the Coast Guard established in support of Department of Defense 
activities are being curtailed. Moreover, the fact that our transoceanic 
civil aviation no longer has a requirement for ocean weather stations has 
made it possible to reduce the number of these stations to those required 
by the Department of Defense, which in the future will finance them. 
These and other realinements will permit Coast Guard financed expendi- 
tures to be reduced from 236 million dollars in fiscal 1954 to 190 million 
dollars in fiscal 1955. 

The Corps of Engineers will carry forward at minimum levels the 
maintenance work required for continued operation of river and harbor 
projects. Construction will also continue in 1955 at economic rates on 
13 channel, harbor, or lock and dam projects, including one project to 
be initiated by a proposed 1954 supplemental appropriation. Seven other 
projects will be initiated and 2 deferred projects resumed in 1955. These 
projects have been selected on the basis of assuring the expeditious move- 
ment of traffic in existing harbors or waterways serving important re- 
quirements of commerce or national security. Emphasis has been given 
to small- or intermediate-sized projects for which detailed engineering 
plans have been completed. Not only do the benefits of these projects 
exceed their costs, but also, except for four high-priority projects of na- 
tional interest, local beneficiaries will make a reasonable financial 
contribution. 

In my State of the Union Message I again strongly recommended en- 
actment of legislation to create a Government corporation to work, along 
with Canada, on the construction and operation of the proposed St. 
Lawrence Seaway. This proposal, now before the Congress, represents 
one part of a broad development of the great potential of the St. Lawrence 
River for electric power and for navigation. The power features of the 
International Rapids section are expected to be constructed in part by the 
Province of Ontario and in part by the State of New York. The seaway 
legislation would permit the Federal Government, in cooperation with 

175 



C][ 14 Public Papers of the Presidents 

Canada, to build the remaining navigation facilities needed for ocean- 
going vessels to reach the Great Lakes. The total amount to be invested 
by the United States in the seaway is now estimated at 105 million dollars, 
with first-year expenditures of 6 million dollars. As I have previously 
indicated, not only would the seaway make a major contribution to na- 
tional security, but over a period of years the tolls received by the United 
States from the prospective commercial use should permit the Federal 
investment to be fully repaid. Joint participation with Canada in this 
undertaking will assure that all legitimate American interests are taken 
into account in the construction and operation of this vital transportation 
link. 

Highways. — Expenditures under the Federal-aid highway program 
of grants to States for highway construction have been rising during the 
past year, and will continue to rise in the fiscal year 1955 under commit- 
ments made pursuant to the Highway Act of 1952. The 1955 expendi- 
tures will be the highest in history. Emphasis in the selection of new 
projects will be given to the national system of interstate highways, which 
comprises the most important routes for interstate commerce and national 
defense. Of the 555 million dollars of estimated expenditures under the 
Federal-aid program in the fiscal year 1955, about 150 million dollars will 
be spent for projects in the interstate system. Other construction pro- 
grams of the Bureau of Public Roads will involve expenditures of 27 mil- 
lion dollars, mainly for direct construction of forest highways and defense 
access roads. 

We should give increased attention to eliminating the existing inade- 
quacies of the national system of interstate highways. Pending develop- 
ment and review of detailed proposals for extension of the Federal-aid 
highway program, I am including under proposed legislation the 575- 
million-dollar level of the existing authorization. Similarly, I am includ- 
ing the prevailing annual rate of 22.5 million dollars for the forest- 
highway program. No appreciable expenditures will be made under the 
proposed authorizations in the fiscal year 1955. 

Postal service. — Measured both in dollars and in employees, the postal 
service is big business. But, in its management, the modern methods 
which have so greatly increased the efficiency of private business have too 
often been ignored. 

Last February, I announced "a program directed at improving service, 
while at the same time reducing costs and decreasing deficits." Progress 

176 



Dwight D. Eisenhower, 1954 ^ 14 

is being made toward achieving these objectives and will continue. 

First, we are speeding the delivery of mail by many new steps without 
significant change in costs of handling. Later window hours, later pick- 
ups, changes in transportation patterns and schedules, experiments in 
carrying first-class mail by air, and many other projects have been made 
effective or are now being tested. The results will become increasingly 
apparent in the next year. 

Second, to obtain a clear-cut measure of the cost of operating the postal 
service, the payment of airline subsidies has been transferred by reorgani- 
zation plan to the Civil Aeronautics Board, and legislation enacted to 
require Government agencies and the Congress to reimburse the Post 
Office for the cost of handling their mail. 

Third, we have initiated many economies and are planning others. 
Reduced mail-handling costs through efficient modern techniques already 
have resulted in substantial savings. This program is well underway but 
will take a long time to complete, since the new methods will require 
employee training and development of new machines. 

Fourth, the deficit has been further reduced by increases in rates which 
the Postmaster General could change. Increases in parcel-post rates, 
foreign-mail rates, and others subject to administrative discretion have in 
the main put these services on a self-supporting basis. 

The results of these and other improvements are already visible in the 
financial operations and outlook. Despite an estimated increase in mail 
volume of almost 2 billion pieces, gross expenditures of 2,775 million 
dollars in the fiscal year 1955 will remain unchanged from 1954. With 
higher operating revenues, the deficit under existing postal rates will 
continue to decline : 

Million 

1953 (actual) $659 

1954 (estimated) 440 

1955 (estimated) 330 

No business, public or private, can prosper unless its management is 
free to use the best available methods of operation and to set prices ade- 
quate to cover the costs of an efficient operation. Legislation is already 
before the Congress to authorize the Post Office Department to acquire 
needed modern postal facilities, through long-term leases with title ac- 
quired at the end of the term. Other legislation is required to correct 
archaic administrative and personnel practices, and to enable expanded 
use of more modern transportation methods. 

177 



<J 14 Public Papers of the Presidents 

Most important, prompt and favorable action by the Congress is needed 
to increase postal rates. I am recommending increases in rates sufficient 
to yield as a minimum an additional 240 million dollars in revenues in 
the fiscal year 1955. These revenues would reduce the 1955 postal deficit 
to 90 million dollars. Adequate rates, together with further major econo- 
mies in postal operations, are expected to put the postal business on a 
self-supporting basis. This will continue to be our policy. 

Regulation, — Three regulatory commissions carry out the Govern- 
ment's responsibility to protect the public interest in reasonable rates and 
adequate, safe transportation and communication : Interstate Commerce 
Commission, Federal Communications Commission, and Civil Aero- 
nautics Board. Although their duties have substantially increased in 
recent years, anticipated improvements in management and procedures 
make it unnecessary to request any significant appropriation increases. 
For example, the centralization of administrative responsibility and the 
reorganization of existing activities in the Interstate Commerce Com- 
mission should make possible more effective use of available funds. By 
the end of the fiscal year 1954, the Federal Communications Commission 
should be substantially current in handling applications for television sta- 
tions, so that the funds required for its activities, except for a new program 
of monitoring frequency usage, will be smaller in the fiscal year 1955 
than in 1954. 

Receipts of public enterprise funds. — Two-thirds of the gross expendi- 
tures of 4,277 million dollars for transportation and communication pro- 
grams in the fiscal year 1955 will be financed from receipts of public 
enterprise funds. Postal receipts account for the bulk of these revenues. 
Substantial receipts are also anticipated from tolls and other revenues of 
the Panama Canal Company, and from vessel operations of the Maritime 
Administration. 

FINANCE, COMMERCE, AND INDUSTRY 

Within the limits set by requirements of national defense and the needs 
of the national economy, we are steadily reducing direct banking and 
business operations of the Federal Government. For example, the Re- 
construction Finance Corporation is being liquidated, and the Govern- 
ment's synthetic rubber plants are being offered for sale. At the same 
time, the programs of the Department of Commerce to promote trade and 
industry are being strengthened and the Small Business Administration has 

178 



Dwight D. Eisenhower, IQ54 



14 



Finance, Commerce, and Industry 
[Fiscal years. In millions] 

Gross expenditures Net expenditures 



1953 
Program or agency actual 

Promotion of defense produc- 
tion: 
Expansion of defense pro- 
duction $390 

Reconstruction Finance 

Corporation 516 

Other 121 

Business loans and guaran- 
tees: 
Reconstruction Finance 
Corporation (Treasury) : 

Loans 128 

Other 18 

Small Business Administra- 
tion 

Promotion or regulation of 
trade and industry: 
Department of Commerce . 1 7 

Other 9 

Promotion or regulation of 
financial institutions 6 



1954 
esti- 
mated 



1955 
esti- 
mated 



1953 
actual 



1954 
esti- 
mated 



!955 

esti- 
mated 



Recom- 
mended new 
obligational 
authority 
f or l 955 



$562 $546 



$381 $308 



349 

27 



44 
122 



17 
10 



270 
16 



10 
5 

3i 



22 
11 



-98 
84 



7 
-29 



17 
9 

-3 



-233 
~5 



-95 

97 



-65 

-4 



— 121 
~*9 



$4 



25 



i7 
10 



22 
11 



Total 1 j 205 1,151 917 76 164 162 * 42 

1 Compares with new obligational authority of 134 million dollars in 1953 and 97 
million dollars in 1954. 

been established to meet the special needs of small business. Regulatory 
agencies are simplifying their procedures and putting greater stress on 
cooperation rather than compulsion, without reducing protection to the 
public. 

Gross expenditures for finance, commerce, and industry programs are 
expected to be 917 million dollars in the fiscal year 1955, a reduction of 
234 million dollars from 1954. About 60 percent of these expenditures 
are for financial assistance provided under the Defense Production Act. 
Another 30 percent are for the production programs administered by the 
Reconstruction Finance Corporation — primarily rubber and tin. Antici- 
pated receipts of these enterprises as a group will decline about as much 
as their expenditures. Accordingly net expenditures of 162 million dollars 
in 1 955 will be about the same as in 1 954. 



179 



<][ 14 Public Papers of the Presidents 

Expansion of defense production. — The Defense Production Act au- 
thorizes extensive financial assistance to assure expansion of productive 
capacity and of the materials supply necessary for our defense. With the 
help of purchase commitments, loans, and advances already made, much 
of the needed expansion is now under way. As a result, the aluminum 
productive capacity of the United States has doubled since 1950 and 
supplies of machine tools, titanium, copper, nickel, and other critical 
items have also substantially increased. 

These programs are financed under the borrowing authority of 2.1 
billion dollars provided in the Defense Production Act. Gross expendi- 
tures in the fiscal year 1955 are estimated at 546 million dollars. Of this 
amount 296 million dollars will be spent for purchases of materials and 
165 million dollars for loans and advances to producers. Most of these 
expenditures arise from commitments already outstanding. Since a large 
part of the materials to be acquired under this authority will be sold to the 
military stockpile of strategic and critical materials to meet its objectives, 
this program is intimately related to the stockpiling program discussed in 
the national security section of this message. Receipts from these sales 
and from sales to private industry, together with repayments of loans and 
advances, are estimated at 238 million dollars in 1955, reducing net 
expenditures to 308 million dollars. 

Reconstruction Finance Corporation — production programs. — Ex- 
penditures and receipts of the rubber, tin, and abaca fiber programs cur- 
rently administered by the Reconstruction Finance Corporation will 
continue to decline sharply in 1955, primarily as a result of reduced 
operations anticipated in the tin program. 

By the end of the present fiscal year, the Government will have com- 
pleted purchases of tin for the national stockpile. World supplies are 
already adequate to meet current requirements. As a result, there may 
no longer be a need for continued operation of the Government tin 
smelter in 1955. Pending outcome of international negotiations, the 
budget assumes withdrawal of the Government smelter from operations 
at the end of the fiscal year 1 954. 

During the fiscal years 1954 and 1955, annual production of synthetic 
rubber is estimated at about 600,000 tons — a reduction from the 7 12,000 
tons produced in 1953. Present experience indicates that this level of 
production will meet all of the anticipated national needs for synthetic 

180 



Dwight D. Eisenhower, 1954 ^ 14 

rubber. Although the Rubber Facilities Disposal Act authorizes sale of 
Government plants to private ownership before the end of the fiscal year 
1955, plans are not yet far enough advanced to include estimated receipts 
from such disposal in the 1955 budget. 

The production programs will be transferred to another agency before 
June 30, 1954, as provided in the Reconstruction Finance Corporation 
Liquidation Act. 

Business loans and guarantees. — The regular business loan program of 
the Reconstruction Finance Corporation is now in liquidation as a result 
of legislation enacted last year on the recommendation of this administra- 
tion. The Treasury Department will administer the liquidation after 
June 30, 1954. We plan to sell a major part of the Corporation's loans 
to private financial institutions. To meet commitments previously made, 
some expenditures will continue, but repayments and sales of loans will 
result in estimated net receipts of 12 1 million dollars in 1955. 

A new program of loans to small businesses has recently been estab- 
lished in the Small Business Administration. The 1955 budget assumes 
that about 350 loans will be authorized in the fiscal year 1954, and about 
700 in 1955. This would almost exhaust the available appropriation 
of 55 million dollars by the end of 1955. Loans will be made where 
private credit on reasonable terms is unavailable, and, whenever possible, 
they will be made jointly with private banks. The Small Business Admin- 
istration also assists small concerns in obtaining a fair share of Government 
contracts, and provides them with technical and financial advice. 

Department of Commerce. — In accordance with this administration's 
declared policy, most emergency controls over business have been removed. 
The business programs of the Department of Commerce have been re- 
organized to provide a simpler and more effective basis for carrying on 
both regular business services and continuing responsibilities under the 
Defense Production Act. The Business and Defense Services Administra- 
tion provides general services to business, assists in mobilization prepared- 
ness, and administers relevant current defense activities. The Bureau of 
Foreign Commerce assists in promoting international trade, primarily by 
providing American business with information on opportunities to buy 
and sell abroad. The Office of Business Economics provides data on the 
American economy and analyses of economic and business trends for a 
wide range of business and Government purposes. I am recommending 

51986—60 15 I ° I 



<][ 14 Public Papers of the Presidents 

small increases in the appropriations for these programs so that the De- 
partment can adequately carry out its responsibilities to foster and promote 
industry and commerce. 

LABOR AND MANPOWER 

My budget recommendations for the labor and manpower programs 
of the Federal Government are designed to help the Nation's productive 
system function smoothly and efficiently, by providing economic safe- 
guards for workers, by helping bring together jobseekers and jobs, and by 
helping to recruit the working forces for defense and other industries. 
Workers will continue to be given protection against substandard wages 
and working conditions and against income losses due to unemployment. 
Orderly labor relations will be fostered, and the amicable settlement of 
disputes will be assisted by mediation. 

Including proposed legislation, budget expenditures for labor and man- 
power programs are estimated at 281 million dollars during the fiscal year 
1955, an increase of 16 million dollars from the current fiscal year. Ap- 
proximately three-fourths of total budget expenditures for these programs 
is for administering the job placement and unemployment compensation 
services. 

Although many of our workers benefit from the existing Federal-State 
unemployment compensation system, the present Federal law does not 
include employees of firms with fewer than eight persons nor does it in- 
clude Federal civilian employees. I recommend prompt extension of the 
system to these workers. Seventeen States already provide coverage of 
most firms with one or more employees, and most other States have legis- 
lation which will permit immediate coverage when the Congress acts. 
Amendments to State laws to achieve full coverage will be needed in only 
a dozen States. This preparedness on the part of the great majority of 
States will permit rapid extension of this valuable protection after the 
Federal law is amended. Additional revenues will more than offset the 
administrative costs resulting from such extension. An estimate of the 
benefit costs for Federal employees is included under general government. 

Placement and unemployment compensation administration. — Gross 
expenditures in the fiscal year 1955 for administering the Federal-State 
placement and unemployment compensation services under present law 
are estimated at 192 million dollars, 7 million dollars below the current 
year. A decrease of about 30 million dollars will result from a change in 

182 



Dwight D. Eisenhower, IQ54 



<& 14 



Labor and Manpower 
[Fiscal years. In millions] 



Expenditures 



Program or agency 

Gross expenditures: 
Placement and unemployment com- 
pensation administration: 
Department of Labor: 

Present program 

Proposed legislation to broaden un- 
employment insurance: 

Federal civilian personnel 

Other workers 

Labor standards and training: 

Department of Labor 

Mine safety (Department of the In- 
terior and other) 

Military manpower selection: Selective 
Service System and National Security 

Training Commission 

Labor relations 

Labor information, statistics, and gen- 
eral administration: Department of 

Labor 

Defense production activities: Depart- 
ment of Labor 

Total 

Deduct applicable receipts: Farm labor 
supply revolving fund 



1953 

actual 



1954 

estimated 



1955 

estimated 



Recom- 
mended new 
obligational 
authority 
f or J955 



$212 $199 



$192 



2 
20 



$223 



2 
20 



13 


12 


12 


12 


4 


5 


5 


5 


33 


30 


3i 


32 


13 


14 


13 


13 



7 • 


7 


7 


2 


w 




284 


267 


282 


3 


2 


1 



' 314 



281 



265 



281 



Net budget expenditures 

1 Less than 500,000 dollars. 

2 Compares with new obligational authority of 282 million dollars in 1953 and 267 
million dollars in 1954. 

financial arrangements, by which advance payments to each State before 
the opening of each fiscal year will be reduced from an amount covering 
three months' operations to an amount for one month. Part of this re- 
duction will be offset, however, by a higher estimated rate of expenditures 
for this program resulting from increases in salaries provided by State 
laws to employees who administer the services, some rise in the expected 
number of unemployment compensation claimants, and provision for 



183 



<| 14 Public Papers of the Presidents 

weekly filing of claims and weekly payment of benefits. The weekly 
claims system, replacing the biweekly method currently in use in most 
States, will provide more satisfactory service to the claimants and, by per- 
mitting more frequent contact, should reduce the possibilities of fraudulent 
or erroneous payments. These factors may make necessary a request for 
a supplemental appropriation for the current fiscal year. 

This administration has already recommended enactment of legislation 
to transfer annually to a special account in the unemployment trust fund, 
an amount equal to the difference between the receipts of the Federal 
unemployment tax and the administrative costs of operating our joint 
Federal-State unemployment security program. The initial transfer, based 
on receipts and expenditures in the fiscal year 1955, would be made at the 
beginning of the fiscal year 1 956. 

My recommendations in this budget provide for continued operation 
of the system for recruiting qualified workers from Mexico for seasonal 
employment on farms in the United States. These workers are needed 
to supplement our domestic farm-labor supply. The 1954 appropriation 
for this recruitment program was based on legislation which was to have 
expired on December 31, 1953. This authority has now been extended 
until December 31, 1955, and funds are included in the budget to pay 
for operations during the rest of the fiscal year 1954, as well as in the fiscal 
year 1955. 

The railroad unemployment insurance taxes and expenditures which 
were previously included in budget accounts are now entirely included 
in trust accounts. 

Labor standards and training. — Budget expenditures for the minimum- 
wage and maximum-hour regulatory programs in the fiscal year 1955 are 
estimated at about the 1954 level. 

The social and economic plight of migratory farmworkers has been 
studied repeatedly. Up to now, little positive action to better these condi- 
tions has been taken by the Federal Government. This budget includes a 
recommended appropriation of 100 thousand dollars to enable the De- 
partment of Labor to provide leadership in establishing a cooperative 
Federal-State program in the fiscal year 1955. 

Military manpower selection. — Although a reduction in military per- 
sonnel is planned, calls by the Department of Defense in 1955 to replace 
men drafted in 1953 will require an increase of 676 thousand dollars in 
estimated expenditures of the Selective Service System. This budget pro- 

184 



Dwight D. Eisenhower, 1Q54 ^ 14 

vides also for continuing a small staff for the National Security Training 
Commission. 

Labor relations. — Budget expenditures of 13 million dollars in the 
fiscal year 1955 are estimated for the independent labor relations agen- 
cies — the National Labor Relations Board and the mediation services. 
Emphasis will be placed on providing improved services to employers and 
employees of industries and establishments strategically situated in inter- 
state commerce. 

Unemployment trust fund. — Under present law, unemployment com- 
pensation benefit payments in the fiscal year 1955 are expected to be some- 
what higher than in 1954 because of an increase in claims of short dura- 
tion and liberalization of benefits by States. Receipts in 1955 are esti- 
mated somewhat lower than in the current fiscal year. The legislation I 
am recommending to broaden unemployment compensation coverage will 
increase both the receipts and the benefit payments. Trust-fund trans- 
actions are not included in the totals of budget receipts and expenditures. 

Unemployment Trust Fund 
[Fiscal years. In millions] 

^ . Item 

Receipts: 

Deposits by States and railroad unemployment 

taxes: 

Present programs 

Proposed legislation extending coverage 

Interest 

Payments: 

State and railroad withdrawals for benefits: 

Present programs 

Proposed legislation extending coverage 



l 953 
actual 


1954 
estimated 


1955 

estimated 


$i,39i 


$1,344 


Si, 329 
145 


203 


222 


216 


— 1, 004 


-i>o95 


~h 195 
-60 


590 


47i 


435 



Net accumulation, including proposed legisla- 
tion 

Balance in fund at close of year 9, 244 9, 7 1 5 1 o, 1 50 

GENERAL GOVERNMENT 

Net expenditures for general government functions are estimated at 
1,160 million dollars for the fiscal year 1955, compared with 1,175 million 
dollars in the fiscal year 1954. These expenditures are chiefly for the tra- 
ditional Government activities not specifically classified elsewhere — mak- 
ing and enforcing the laws, collection of revenues, management of the 
public debt, and custody and management of public buildings and records. 

185 



9 14 



Public Papers of the Presidents 



General Government 
[Fiscal years. In millions] 



Program or agency 
Gross expenditures: 

Legislative functions 

Judicial function 

Executive direction 

Federal financial management: 

Tax collection 

Customs collection, debt management, 

and other 

Other central services: 

Central property and records manage- 
ment 

Civil Service Commission 

Other 

Unemployment compensation for Fed- 
eral civilian employees (proposed 

legislation) 

Retirement for Federal civilian em- 
ployees 

Protective services and alien control: 

Federal Bureau of Investigation 

Immigration and Naturalization Serv- 
ice 

Other 

Territories, possessions, and District of 
Columbia: 
District of Columbia: 

Present programs 

Proposed legislation 

Territories and possessions 

Other general government: 
Payment of claims and relief acts. . . . 

Weather Bureau 

Other 





Expenditures 




Recom- 
mended new 
obligational 
authority 
M 1955 


*953 
actual 


1.954 
estimated 


1955 

estimated 


$48 


$46 


$47 


$46 


27 


29 


30 


30 


11 


13 


11 


1 1 


269 


277 


265 


266 


173 


177 


166 


165 


179 
21 


158 
16 


156 
15 


J55 
16 


14 


19 


21 


23 






25 


25 


324 


34 


32 


32 


71 


77 


78 


78 


40 


41 


39 


39 


22 


29 


22 


21 



Total 

Deduct applicable receipts. 

Net budget expenditures . . . 



12 


16 


20 


14 






15 


17 


48 


47 


46 


42 


137 

27 


i49 
26 


13^ 




25 


25 


21 


24 


16 


x 4 


1,444 


1, 178 


I, 164 


1 1,019 


5 


3 


A. 








I. A<\Q 


I. 17^ 


1 . 1 60 





Compares with new obligational authority of 1,337 million dollars in 1953 and 1,033 
million dollars in 1954. 



186 



Dwight D. Eisenhower, IQ54 ^ 1 4 

Federal financial management. — During the past year the Internal 
Revenue Service has improved greatly the administration of Federal reve- 
nue laws. Further economies will be made by cutting overhead expenses. 
These savings of several million dollars will be used to strengthen the field 
audit staff and to obtain more effective collection and enforcement. 
Auditing of tax returns and settlements are being speeded up. Tax col- 
lection has been decentralized so that most decisions in individual cases 
can now be made in district offices near the taxpayer. The reduced staff 
in Washington is concerned primarily with developing overall policies and 
assuring uniformity in administration throughout the country. Neverthe- 
less, serious problems remain. For example, despite the improvement in 
auditing, the backlog of unaudited returns and uncollected accounts has 
increased for several years. Strenuous efforts are being made to reverse 
this trend, both to increase collections and to permit a more prompt deter- 
mination of taxpayers' liabilities. 

Further reduction in expenditures by the Bureau of the Public Debt 
will be achieved in the fiscal year 1955 by revisions in the savings bond 
promotion program to place greater emphasis on the sale of larger de- 
nomination bonds, elimination of uneconomic sales outlets, and other 
economies. A large volume of savings bonds is now reaching maturity, 
but redemptions of these matured bonds are relatively low, since most 
owners are taking advantage of their right to continue to hold them at 
3 percent interest. 

Central property and records management. — Substantial reductions 
have been made in the expenditures of the General Services Administra- 
tion for management of Government property and records. The fiscal 
year 1955 estimate of 156 million dollars is 23 million dollars below actual 
1953 expenditures and 2 million dollars below the revised 1954 estimate. 
These savings primarily result from material reductions in building space 
rented for Government use, made possible in part by reductions in the 
scope of Government operations and accomplished through an aggressive 
and critical examination of requirements. In addition, numerous savings 
are being achieved by the General Services Administration which reduce 
the budget requirements of other agencies throughout the Government. 
Real property requirements and holdings are being reexamined and prop- 
erty determined to be surplus is being disposed of as rapidly as possible. 
Purchases of new materials have decreased as a result of elimination of 



187 



<fl 14 Public Papers of the Presidents 

unnecessary inventories by reduction in the number of separate types of 
items carried in inventories and by better utilization of property already 
on hand. Significant progress also is being made in controlling the volume 
of records, in their economical storage, and, when they are no longer 
essential, in accelerating their disposal. 

Civil Service Commission. — As part of the program for strengthening 
the merit system of the Federal civil service, the budget provides funds 
to improve the standards used for the recruitment and transfer of per- 
sonnel and to further the career development of Government employees. 
The Civil Service Commission expenditures as a whole, however, will 
decrease with improved management practices and with a decline in 
prospective workloads for the examination and placement of applicants 
and for the investigation of persons employed or seeking employment in the 
Federal service. 

I am recommending legislation to strengthen further the merit system 
and to provide conditions of employment for Federal personnel more 
nearly comparable to those in private enterprise. Certain legal restric- 
tions initiated at the beginning of the present national emergency on the 
appointment and promotion of Federal workers should be removed. The 
present statutory limits on the number of high-level executive and scientific 
positions should be raised. Government agencies should be permitted to 
select employees from among the top five rather than the top three on 
Federal civil-service registers. Existing inequities in overtime-pay prac- 
tices should be corrected. Building and maintenance workers should be 
added to the categories of employees paid at rates prevailing locally in 
private employment for similar occupations. The incentive-awards pro- 
gram should be consolidated and improved in order to eliminate costly 
administration and to increase employee interest in greater efficiency and 
economy. The cost of these changes in the main can be absorbed within 
the appropriations recommended for the agencies concerned. 

Unemployment compensation for Federal workers. — I strongly recom- 
mend extension of the unemployment compensation system to give Federal 
employees the same benefits as are now provided to most workers in private 
employment. This will require an estimated 25 million dollars in expendi- 
tures for benefit payments in the fiscal year 1955. This program could 
be administered under contractual arrangements made through the De- 
partment of Labor with existing State unemployment compensation 
systems. 



Dwight D. Eisenhower, IQ54 CJ 14 

Retirement for Federal civilian personnel. — An appropriation of 30 
million dollars is recommended to permit the continued payment to retired 
Federal workers of temporary cost-of-living increases as authorized by 
the Congress in 1952. The budget also includes 2 million dollars to pay 
annuities under special laws. 

The civil-service retirement system is financed jointly by employee con- 
tributions and appropriations by the Government. The Congress, at its 
last session, however, did not appropriate for the Government's payments 
to the fund. The resumption of these payments is not included in this 
budget. Recommendations for financing this system as well as other 
retirement programs for Federal personnel will be determined after the 
Committee on Retirement Policy for Federal Personnel completes its 
study and reports to the Congress on or before June 30, 1954. 

Protective services and alien control. — The Federal Bureau of Investi- 
gation, as the investigative arm of the Department of Justice, obtains 
evidence for use in legal actions involving violations of Federal law. The 
crime rate throughout the country has put an increasing burden on the 
Bureau. The Bureau also has primary responsibility for coordinating 
investigations in the executive branch necessary for the Nation's internal 
security. Such investigations continue at peak levels. It is essential, 
therefore, that the Bureau staff be adequate to discharge these responsi- 
bilities. 

District of Columbia. — I strongly recommend enactment of legislation 
to finance the expanded public works construction urgently needed in 
the National Capital. This legislation would authorize an increase of 
9 million dollars in the annual Federal payment to the general fund of 
the District of Columbia, and an additional 1 million dollars for full 
payment for all water and related services. It would authorize 107 
million dollars of additional interest-bearing loans to the District over 
the next decade, of which an estimated 5 million dollars would be spent 
in the fiscal year 1955. These expenditures by the Federal Government 
would be accompanied by substantial increases in taxes paid by District 
taxpayers. This legislation would, for the first time in recent years, place 
Federal payments to the District government on a level commensurate 
with the Federal Government's position in and its demands upon the 
District. It would permit the District to start a long-term program of 
public works necessary to make the Capital City worthy of our great 
Nation. 

51986—60 16 Z ^9 



<][ 14 Public Papers of the Presidents 

Territories and possessions. — The Federal Government also has special 
responsibilities for administering the various Territories and possessions, 
including the Canal Zone and the Trust Territory of the Pacific Islands. 
Included in this budget are certain necessary increases in expenditures 
for continuing the civilian administration of the Trust Territory, except 
those islands in the northern Marianas returned to the jurisdiction of the 
Navy. I recommend that the Congress enact at an early date legislation 
establishing the basic form of government for the Trust Territory to re- 
place the present temporary arrangements. 

Intergovernmental relations. — A Commission on Intergovernmental 
Relations is now studying the proper role of the Federal Government in 
relation to the State and local governments. It is giving particular at- 
tention to fiscal relationships, such as Federal grants-in-aid, tax sources, 
and intergovernmental tax immunities, and will report shortly on certain 
aspects of its assignment. 

Claims and relief acts. — The payment of certified claims makes up 
the total expenditure figure of 135 million dollars estimated for claims, 
judgments, and private relief acts in the fiscal year 1955. Most of these 
payments are for claims resulting from activities of the Department of 
Defense. The apparent decline of 1 4 million dollars in expenditures in the 
fiscal year 1955 is due to the usual omission in the budget year of any 
specific estimate for other claims, judgments, and relief acts. 

Receipts of public enterprise funds. — The operations of the Virgin Is- 
lands Corporation account for most of the 4 million dollars in receipts of 
public enterprise funds. 

INTEREST 

Primarily as a result of the large increase in the public debt during 
World War II, interest payments now account for about 10 percent of 
Federal expenditures. Interest payments are fixed primarily by the size 
of the public debt and by interest rates on debt already outstanding. 

Interest on the public debt. — Interest payments on the public debt in 
the fiscal year 1955 are estimated at 6,800 million dollars. This is an 
increase of 275 million dollars over estimated expenditures for the current 
fiscal year, and 297 million dollars above actual expenditures in 1953. 

The increase in 1955 reflects both the higher average interest rates and 
the larger public debt. The average rate on the interest-bearing public 
debt rose from 2.33 percent on June 30, 1952, to 2.41 percent on De- 

190 



Dwight D. Eisenhower, IQ54 ^ 14 

Interest 

[Fiscal years. In millions] 

Recom- 
Budget expenditures {net) mended new 

obligational 

!953 J 954 1955 authority 

Item actual estimated estimated for 1955 

Interest on public debt $6, 503 $6, 525 $6, 800 $6, 800 

Interest on refunds of receipts 75 70 70 70 

Interest on uninvested trust deposits 5 5 5 5 

Total 6,583 6, 600 6,875 1 6,875 

3 Compares with new obligational authority of 6,583 million dollars in 1953 and 6,600 
million dollars in 1954. 

cember 31, 1953, primarily because of the refinancing of maturing obli- 
gations at the higher market rates prevailing. As the result of the deficit 
financing during the same period the public debt has increased from 259 
billion dollars to 275 billion dollars (including about one-half billion 
dollars not subject to the statutory debt limitation). 



The budget of the United States is the financial expression of the ad- 
ministration's program for the coming fiscal year. An understanding of 
its scope and content is a high challenge to every citizen. 

When I took office a year ago, I promised the Congress and the people 
that this administration would seek to chart a fiscal and economic policy 
which would reduce the planned deficits and bring the budget into 
balance. 

I warned that this would not be easy. There still are heavy national 
security requirements. Substantial expenditures are by law relatively 
nondiscretionary. The far-reaching activities of the Federal Government 
are extremely complex. 

Despite these inherent difficulties, we have made great progress. Fed- 
eral expenditures have been cut substantially, tax reductions have been 
made justifiable, and the budgetary deficit has been sharply reduced. 

We have, furthermore, made appropriate provision for our national 
security and for our international obligations and we have been able to 
propose certain increases in Federal expenditures to advance our domestic 
well-being and to foster economic growth. 

I firmly believe, therefore, that this budget represents a plan of govern- 

191 



<fl 14 Public Papers of the Presidents 

ment which will not only protect our way of life but will also strengthen 
our economic base and enhance the welfare of all our people. 

Dwight D. Eisenhower 

note: As printed, references to special analyses appearing in the budget document 
have been deleted. 

1 5 *$ Memorandum Concerning Purchase of 
Savings Bonds by Government Employees. 
January 22, 1954 

Memorandum to the Heads of Departments and Agencies: 

The nation's economic welfare requires the widest possible distribution 
of the national debt through the continued sale of United States Savings 
Bonds to the people. To this end it is important that Government em- 
ployees continue their leadership in the purchase of Savings Bonds through 
the Pay Roll Savings Plan. 

The Interdepartmental Savings Bond Committee established by Execu- 
tive Order No. 9953 of April 23, 1948, provides a vehicle for the effective 
promotion of the Pay Roll Savings Plan. This Committee is composed 
of the heads of the several executive departments and agencies or their 
designated alternates. 

I therefore request that each of you give the fullest cooperation to the 
Chairman, Mr. Edward F. Bartelt, Fiscal Assistant Secretary of the 
Treasury, in the work of the Committee. Any of you who will be unable 
to work personally with the Committee should immediately designate an 
alternate from among the senior officials of your department or agency. 

Dwight D. Eisenhower 

16 ^ Memorandum Transmitting Report of the 
Commission on Foreign Economic Policy. 
January 23, 1954 

WITH THIS MEMORANDUM, I am transmitting a copy of the 
Report to the President and the Congress by the Commission on Foreign 

192 



Dwight D. Eisenhower, ig$4 <fl 17 

Economic Policy. The Commission, as you know, was set up, at my 
request, by the Congress to study and report on the over-all foreign eco- 
nomic policy of this country. 

I am anxious that Executive Departments and Agencies with respon- 
sibilities in the area of foreign economic policy proceed immediately with 
an intensive review of this report as a first step in the formulation of a 
unified Administration program to be submitted to the Congress for its 
attention during the current session. 

I am confident that, on the basis of the Report, it will be possible to 
develop a program that will advance the best interests both of the United 
States and of the free world. 

Dwight D. Eisenhower 

note: A copy of this memorandum was suant to the act approved August 7, 1953 
sent to the heads of all departments and (67 Stat. 472). The Commission's re- 
agencies having responsibility for foreign port (94 pp.), transmitted to the Presi- 
economic policy. dent and the Congress on January 23, 
The Commission on Foreign Economic 1954, together with a minority report (20 
Policy, of which Clarence B. Randall pp.), transmitted January 30, were pub- 
served as Chairman, was established pur- lished by the Government Printing Office 

(January 1954). 

1 7 flf Special Message to the Congress on 
Housing. January 25, 1954 

To the Congress of the United States: 

I submit herewith measures designed to promote the efforts of our 
people to acquire good homes, and to assist our communities to develop 
wholesome neighborhoods in which American families may live and 
prosper. 

The development of conditions under which every American family 
can obtain good housing is a major objective of national policy. It is 
important for two reasons. First, good housing in good neighborhoods 
is necessary for good citizenship and good health among our people. 
Second, a high level of housing construction and vigorous community 
development are essential to the economic and social well being of our 
country. It is, therefore, properly a concern of this government to insure 
that opportunities are provided every American family to acquire a good 
home. 

i93 



<]f i J Public Papers of the Presidents 

In working toward this goal, we must not be complacent. The Federal 
government must provide aggressive and positive leadership. At the 
same time actions and programs must be avoided that would make our 
citizens increasingly dependent upon the Federal government to supply 
their housing needs. We believe that needed progress can best be made 
by full and effective utilization of our competitive economy with its vast 
resources for building and financing homes for our people. 

The building of new homes provides only a partial solution to the 
housing problem. The Nation has tremendous assets in its 37,000,000 
existing non-farm homes. The fact that 20,000,000 of these are owner- 
occupied demonstrates the continuing efforts of our people to have their 
own homes, where they can raise their families in self-respect and in good 
surroundings. But 19,000,000 of our existing non-farm homes are more 
than 30 years old. We must encourage the conservation and improve- 
ment of our existing supply of homes for the important contribution this 
can make to the raising of national housing standards. 

Our housing deficiencies continue to be serious. Millions of our people 
still live in slums. Millions more live in run-down, declining neighbor- 
hoods. The national interest demands the elimination of slum condi- 
tions and the rehabilitation of declining neighborhoods. Many of our 
local communities have made good progress in this work and are eager 
to make further substantial improvements but are hard put to find the 
needed resources. 

The knowledge, the skills, the resources and, most important, the will 
to do this job already exist in the Nation. We have a private home- 
building industry and home-financing institutions that are strong and 
vigorous. We have a highly skilled labor force. Savings are high. While 
some of our communities are financially hard-pressed, they are increas- 
ingly alert to the need both for improving their existing physical plants 
and for sound growth and development proportionate to their expanding 
populations. We have the unlimited resources which grow from the inde- 
pendence, pride and determination of the American citizen. I am 
convinced that every American family can have a decent home if the 
builders, lenders, and communities and the local, State and Federal 
governments, as well as individual citizens, will put their abilities and 
determination energetically to the task. 

To help find the best way to meet our national housing needs, I recently 
appointed an Advisory Committee on Government Housing Policies and 

i94 



Dwight D. Eisenhower, 1954 ^ 17 

Programs, consisting of leading citizens experienced in the problems of 
housing, mortgage finance, and community development. Under the 
Chairmanship of the Housing and Home Finance Administrator, this 
Committee has made an exhaustive study of existing Federal housing 
programs. It has also analyzed numerous proposals for the development 
of a program better adapted to our present housing requirements. The 
conclusions of this Committee, and the results of our own studies and 
experience in administering present housing laws, are reflected in the 
recommendations I am about to propose. Several of these recommenda- 
tions provide an entirely new approach to the task of meeting our housing 
needs. 

I. NEIGHBORHOOD REHABILITATION AND ELIMINATION AND PREVENTION 

OF SLUMS 

In order to clear our slums and blighted areas and to improve our 
communities, we must eliminate the causes of slums and blight. This is 
essentially a problem for our cities. However, Federal assistance is justi- 
fied for communities which face up to the problem of neighborhood decay 
and undertake long-range programs directed to its prevention. The main 
elements of such programs should include : 

First. Prevention of the spread of blight into good areas of the com- 
munity through strict enforcement of housing and neighborhood stand- 
ards and strict occupancy controls ; 

Second. Rehabilitation of salvable areas, turning them into sound, 
healthy neighborhoods by replanning, removing congestion, providing 
parks and playgrounds, reorganizing streets and traffic, and by facili- 
tating physical rehabilitation of deteriorated structures; 

Third. Clearance and redevelopment of nonsalvable slums. 

Existing housing programs permit an effective attack on only the third 
of these essential tasks. A new approach will help our communities to 
deal effectively with the other two. I, therefore, make the following 
recommendations : 

1. Title I of the Housing Act of 1949 should be broadened. It should 
make available a program of loans and grants for the renovation of salvable 
areas and for the outright elimination of nonsalvable slums. Under this 
program, there would be immediately available from existing authoriza- 
tions approximately $700,000,000 of loan funds and $250,000,000 in 
capital grant funds. As our communities are enabled by this broadened 

195 



<][ i J Public Papers of the Presidents 

authorization to increase the scope and pace of their efforts, I shall re- 
quest such additional loan and grant authorizations as can be effectively 
used. 

2. The Federal Housing Administration should be authorized to insure 
private credit used to rehabilitate homes in declining neighborhoods. 
This new program should be limited to specific areas where the local 
community has given adequate assurances that it will carry out a workable 
plan of neighborhood renewal. 

3. A program of matching grants to States and metropolitan areas 
should be established to enable smaller communities and metropolitan 
area planning agencies to do the planning job which is necessary to arrest 
the spread of slum conditions. I recommend that the Congress authorize 
the appropriation of $5,000,000 for this purpose. 

II. CONSERVATION AND IMPROVEMENT OF EXISTING HOUSING 

Because of the housing shortages that developed during the depression 
and war years, recent Federal housing activities have been directed mainly 
to increasing the production of new homes. But while the high demand 
for new homes will continue, and while private activity will be encouraged 
to meet that demand, we must also undertake the long-delayed job of 
maintaining existing homes in good condition. Millions of our people 
live in older homes in which they have invested their savings; our people 
and our economy will greatly benefit if these homes can be kept in good 
repair and are brought up to modern standards of comfort and 
convenience. 

It is not enough, therefore, to rehabilitate homes in obsolete neighbor- 
hoods. To encourage the maintenance and improvement of homes 
wherever located, I recommend the following additional amendments to 
the National Housing Act : 

1. The maximum permissible terms authorized for the insurance of 
loans on existing homes should be made comparable to those available 
for new housing. This amendment will end the present discriminatory 
policy which favors the purchasing of new as against existing homes. 
It should have the important additional advantage of facilitating the 
trading in of older homes on new home purchases. 

2. The maximum loan which can be insured under Title I of the 
National Housing Act to repair and modernize single-family homes should 
be increased from $2,500 to $3,000 and the maximum term should be 

196 



Dwight D. Eisenhower, ig^4 <J 17 

extended from three years to five years. Comparable revisions should be 
made in loan limitations and terms authorized for the rehabilitation of 
multiple dwellings. Since the terms of such loans have not changed for 
fifteen years, these adjustments are obviously needed to help our citizens 
repair and improve their homes. 

III. HOUSING FOR LOW-INCOME FAMILIES 

The continued lack of adequate housing, both new and used, for low- 
income families is evidence of past failures in improving the housing con- 
ditions of all of our people. Approval of my preceding recommendations 
will increase the opportunities of many families with low incomes to buy 
good older homes. But a more direct and more positive approach to 
this serious problem must be taken by the government. I recommend, 
therefore, a new and experimental program under which the Federal 
Housing Administration would be authorized to insure long-term loans 
of modest amounts, with low initial payment, on both new and existing 
dwellings, for low-income families. The application of this new authority 
should be limited to those families who must seek other homes as a result 
of slum rehabilitation, conservation, and similar activities in the public 
interest. I recognize, as did the Advisory Committee, that this program 
represents a challenge to private builders and lenders. In order to assist 
them in meeting this challenge, a greater proportion of the risk should 
be underwritten by the Federal Housing Administration than it regularly 
insures. The successful development of this program will afford a much 
greater proportion of our lower income families an opportunity to own 
or rent a suitable home. 

Until these new programs have been fully tested and by actual per- 
formance have shown their success, we should continue at a reasonable 
level the public housing program authorized by the Housing Act of 1949. 
I recommend, therefore, that the Congress authorize construction, during 
the next four years, of 140,000 units of new public housing, to be built in 
annual increments of 35,000 units. Special preference among eligible 
families should be given to those who must be relocated because of slum 
clearance, neighborhood rehabilitation, or similar public actions. The 
continuance of this program will be reviewed before the end of the four- 
year period, when adequate evidence exists to determine the success of 
the other measures I have recommended. In addition to this requested 
extension of the public housing program, the Housing Administrator will 

197 



<][ 1 7 Public Papers of the Presidents 

recommend amendments to correct various defects which experience has 
revealed in the present public housing program. 

IV. HOUSING PROBLEMS OF MINORITY GROUP FAMILIES 

It must be frankly and honestly acknowledged that many members of 
minority groups, regardless of their income or their economic status, 
have had the least opportunity of all of our citizens to acquire good 
homes. Some progress, although far too little, has been made by the 
Housing Agency in encouraging the production and financing of ade- 
quate housing available to members of minority groups. However, the 
administrative policies governing the operations of the several housing 
agencies must be, and they will be, materially strengthened and aug- 
mented in order to assure equal opportunity for all of our citizens to 
acquire, within their means, good and well-located homes. We shall 
take steps to insure that families of minority groups displaced by urban 
redevelopment operations have a fair opportunity to acquire adequate 
housing; we shall prevent the dislocation of such families through the 
misuse of slum clearance programs; and we shall encourage adequate 
mortgage financing for the construction of new housing for such families 
on good, well-located sites. 

V. MODERNIZATION OF NATIONAL HOUSING ACT 

There are certain deficiencies and numerous obsolete and unnecessary 
provisions in the National Housing Act. The Housing Administrator 
will present to the appropriate Committees of the Congress a number of 
proposals to modernize this basic law. These recommendations will 
include a scale of mortgage ceilings more realistically related to the 
increased cost of both single-family and multi-family structures and com- 
plementary revisions in mortgage ceilings for cooperative projects. 

VI. ADJUSTMENT OF PERMISSIBLE TERMS OF GOVERNMENT INSURED 
OR GUARANTEED MORTGAGES 

Because inflationary or deflationary pressures can be accentuated or 
diminished by mortgage credit terms, government operations in con- 
nection with the insurance or guarantee of mortgage loans should be 
judiciously adjusted to prevailing economic conditions. The Congress 
has already given the President limited authority to adjust from time 
to time, in the light of economic conditions, the permissible terms on 

198 



Dwight D. Eisenhower, IQ54 t| 17 

government guaranteed and insured mortgages. I urge the Congress to 
broaden this authority to cover all loans insured by the Federal Housing 
Administration and guaranteed by the Veterans Administration. Such 
authority would permit adjustments, within appropriate statutory limits, 
in maximum interest rates and in loan-to-value ratios and maturities. 
This action by the Congress would materially strengthen our ability to 
stabilize economic activity and high levels of production and employ- 
ment. A fuller discussion of the importance of this recommendation 
will be included in the Economic Report to be submitted to the Congress 
on January 28. 

VII. SECONDARY MORTGAGE MARKET 

In recent years the Federal National Mortgage Association has func- 
tioned as a primary lender rather than as a secondary source of mortgage 
credit. As a result the Federal government now finds itself with sub- 
stantial frozen investments in guaranteed and insured mortgages. Be- 
cause of the terms on which these mortgages were written and the prices 
at which they were purchased, they are not readily salable in the private 
market. The following changes should therefore be made : 

1. The Federal National Mortgage Association should be reorganized 
to require the users of the facility to invest funds on a basis which would 
eventually permit the full retirement of government funds from secondary 
mortgage market operations. The Federal government should be en- 
abled to purchase the initial stock of the reorganized association, but 
private capital funds supplied by the users of the facility should be built 
up to speed the retirement of the government's initial investment. 

2. The reorganized Federal National Mortgage Association should be 
given three basic responsibilities: 

First, it should be authorized to issue its own non-guaranteed deben- 
tures on the private market. With the funds so obtained, it can perform 
a desirable service by buying mortgages at market rates in areas where 
investment funds are scarce, for resale in areas where there is a surplus 
of funds. There is need for an organization to carry out this true function 
of a secondary market. 

Second, the new Association should be authorized to manage and 
liquidate present mortgage holdings which are government-owned assets. 
It should be made clear that such liquidation is to be accomplished in 
an orderly manner and in such a way as to protect the interests of the 
individual borrower. Since Treasury funds were used in the acquisition 

199 



<][ 1 7 Public Papers of the Presidents 

of these assets, all proceeds of this liquidation should be returned to the 
Treasury. 

Third, the President should be enabled to authorize the Federal Na- 
tional Mortgage Association to borrow directly from the Treasury for 
the sole purpose of purchasing certain kinds and types of insured and 
guaranteed loans when the President determines such action to be neces- 
sary in the public interest. For this purpose the borrowing authority of 
the Association should be limited to a reasonable amount to be made 
available from the present Treasury borrowing authorization of the As- 
sociation. Although outright primary support for certain types of loans 
may be desirable in the public interest from time to time, this support 
should be clearly identified as the direct use of Treasury funds for mort- 
gage purchasing, and the extent of such support should be closely 
controlled. 

Approval of these recommendations will correct the most serious defects 
of the present mortgage purchasing operations of the Federal government 
and will authorize an effective secondary market facility, relying primarily 
on private financing. It will also provide flexible authority under which 
the Federal government could directly purchase mortgages, should eco- 
nomic conditions and the public interest indicate the need for such action. 

VIII. REORGANIZATION OF FEDERAL HOUSING ACTIVITIES 

The present organization of Federal housing activities is unsatisfactory. 
The Housing and Home Finance Agency is a loosely knit federation of 
separate organizations. Its present structure is cumbersome, inefficient 
and lacks clearcut recognition of administrative authority. The result is 
confusing to the public. Neither the Congress nor the Executive Branch 
can expect it to achieve good and efficient management under its present 
structure. I shall, therefore, submit to the Congress a reorganization plan 
to provide a better grouping of housing activities headed by an Adminis- 
trator with adequate supervisory authority. 



I believe that this message offers the means whereby our Nation may 
provide more and better homes for our families. By applying these recom- 
mendations we shall add to the comfort and the health of our people; we 
shall strengthen the economic and social fibers of our Nation; and we 
shall reinforce the freedom and self-reliance which have brought great- 



200 



Dwight D. Eisenhower, ig$4 <J 1 8 

ness to our land. I urge, therefore, that the Congress give to these 
recommendations its early and favorable consideration. 

Dwight D. Eisenhower 

i 8 ^ The President's News Conference of 
January 27, 1954. 

the president. Ladies and gentlemen, I have one or two items I think 
may be of some interest. 

As you know, President Bayar and his wife are going to be here this 
evening as visitors to our Government, and there will be a formal dinner 
for them this evening. I am delighted to have them, of course. Turkey 
has emerged a very modern and sturdy nation and great friend of ours, 
and so I regard it as a great privilege to have the opportunity of paying 
a compliment to them. 

The other item that certainly interests me and, I hope, you, is coffee. 

I want to be very careful what I say. I am going to read one or two 
sentences, they are not particularly for quotation, but I don't want to 
misquote the Federal Trade Commission. I understand they are going 
to have a press conference themselves, so I am not trying to steal their 
story. I just want to tell you, up to date, what I know about it. 

On January 13 they started a preliminary investigation to see what 
was the trouble about coffee prices in this country. They discovered 
enough that they thought a full-scale investigation was indicated, and is 
going to take place. 

Now, the Chairman said that the Commission will give particular at- 
tention to the charge that domestic trading in coffee futures on the Coffee 
and Sugar Exchange is restricted to certain types of coffee, and that all 
domestic coffee prices are tied in in some ways to the Exchange price. 

What it all means and comes down to is that they are going to try to 
determine first whether the law has been violated and, secondly, to 
publish all the facts in an economic report. 

Of course, the Commission will maintain liaison with the Department 
of Justice. 

Just exactly what is going on, no one seems to know. Of course, we 
do know there is a shortage. Back in the thirties there was a great surplus ; 

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<][ 1 8 Public Papers of the Presidents 

there was a reduction in planting, I believe even a cutback in the acreage 
devoted to coffee, and now demand has caught up. Add to that a few 
frosts and things like that; it's been bad, and it's bad for all of us in coffee 
at this time. Anyway, the Trade Commission is making a full investiga- 
tion of the matter. 

In the past week, as you know, the Randall Commission reported to 
me, and I have sent copies of the Randall Commission Report to each 
executive agency of Government. 

Now, the idea of the Commission was conceived in line with the whole 
general policy of developing a stronger America. It has to be examined 
by all interested agencies to make certain that in trying to achieve that 
effort, we don't damage or harm seriously, at least, any great group in 
America. To that I would never be a party, because the attempt is to 
develop the economy of America, make it stronger, not to make it weaker. 

Because of the very dedicated work all these people did, I think all 
of us owe them a debt of thanks. Certainly I feel so. And I feel that 
Mr. Randall himself has worked so hard on it that he still has a field of 
usefulness as we analyze and present these conclusions in the form of 
specific recommendations. So I have retained him as a Special Consult- 
ant to the White House, which he has agreed to, to help out in that way 
for the time being. 

Now, let's see if I had anything else here. I think that is all the special 
items I have. We'll go to questions. 

Q. Merriman Smith, United Press: Mr. President, in your recent 
speech to the Anti-Defamation League of B'nai B'rith, you spoke quite 
highly of part of the American code of behavior being that the accused 
had the right to face his accuser. A California Congressman, a Demo- 
crat named Condon, yesterday before the House Un-American Activities 
Committee, asked for the right to face his accusers. He had been men- 
tioned in an AEC report as being a Communist, and he denied that. 
I wonder if you think your code, as you spelled it out for the Anti- 
Defamation League, would apply in his case? 

the president. Well, Mr. Smith, you are asking me to take one off- 
the-record expression of conviction, translate it quickly into a specific 
case, and make an application in another quick conclusion. 

I certainly believe earnestly in the general statement that I made before. 
This case, I really have had no connection with. As I understand, it was 
done in the Atomic Energy Commission. 

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Dwight D. Eisenhower, ig54 ^ 1 8 

Just what can be done in these cases, I am not certain, but I do think 
that this man has got to be given every right to clear himself. This is 
the first time I knew he had been accused of being a security risk, and 
I don't know any of the circumstances; but I certainly believe that if 
we are going to have decency and justice for the individual in this 
country, he has got to be given full opportunity in some way to establish 
the falsity of charges. 

Just how that works out in a specific case, I think I will have to pass 
that one for a moment. Maybe there will be a report made on it to me, 
on that subject; I don't know. 

Q. Raymond Brandt, St. Louis Post-Dispatch : Mr. President, on this 
Randall Commission Report, after the agencies have reported, will you 
send a special message to Congress? 

the president. I haven't any fixed conclusions; I suppose I will, 
yes, I think I will. That was certainly my original intention. 

Q. Mr. Brandt: And it will follow the general line of the majority 
report, if you can find out the majority? [Laughter] 

the president. It is being analyzed now, but there is, generally 
speaking, a majority opinion runs through it. The recommendations I 
make will be based upon the Report and upon the analyses made by the 
several Departments of Government. 

Q. Ray Scherer, National Broadcasting Company : I have a question 
allied to Mr. Smith's, and I would like to ask you to comment, if you 
will, sir, on a development in Norwalk, Connecticut. It appears this 
morning on the front page of a paper that is generally deemed to be 
reliable, and it goes like this: "The names and addresses of residents of 
this city whose record of activities are deemed to be Communistic by the 
local Post for the Veterans of Foreign Wars, are being forwarded by it 
to the Federal Bureau of Investigation." 

the president. Now, what do you want me to comment? 

Q. Mr. Scherer: Whether you think this fits in with the expressions 
in your B'nai B'rith speech: "It was learned today that a special com- 
mittee formed from men from all walks of life had been created to sift 
the suspects." Do you think this might be a threat to civil liberties? 

the president. Well, I don't believe you can stop anybody from 
putting something down and sending forward names; but I believe that 
there are libel and slander laws in our country, and if a man makes or a 
group of people make false charges against someone, they have to be 

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C[f 1 8 Public Papers of the Presidents 

responsible for their own statements. So just what this one is, I don't 
know; I had not heard of it, and I am not sure what opinion I would 
have on this at all. 

Q. Sarah McClendon, El Paso Times: In line with that same thing, 
we learned at Mr. BrownelPs press conference last week, and I believe 
Mr. Donald Dawson stated this in the paper this morning, that if you 
are employed by the Federal Government and you suddenly leave or 
quit, your friends may think you have been fired for security reasons; 
you have no means of proving to them. I know a man who quit the 
State Department the other day, and he said, "Please don't put it in 
the paper; I am just quitting, but somebody will think I have been fired 
for security reasons." Is there some way we can devolve a system for 
tagging these people, like the Army does, with honorable discharges 
and dishonorable discharges? 

the president. Of course, this whole thing is a very confused busi- 
ness, and since there have been so many hundreds of thousands, millions 
of people employed by the Government, unusual and cloudy cases arise. 

As I told you before, our idea is here that we should not charge anyone 
with disloyalty or subversive activity unless that is proved in a court of 
law, and I don't believe that we should. We talk and try to devise a 
scheme whereby those people whose records gave you some evidence that 
they were not good security risks in the Government should not be there 
employed. 

Now, that is all that we have ever tried to say about this thing. Cer- 
tainly no one that I know of has ever gone a bit further. 

As to differentiating between the person who gets, let's say, a letter 
of commendation when he goes, and the other, I think it ought to be 
possible. You bring up a point of this thing, I must tell you, that I 
had not thought about; but I think something like that ought to be 
possible. Certainly, I am going to ask about it and see whether it can 
be done. 

Q. Mrs. May Craig, Maine Papers: Mr. President, last night in a 
speech at a pro-Bricker amendment dinner, it was charged that the 
Status of Forces legislation of the last year, which subjected American 
soldiers to foreign courts in NATO countries does, in fact, deprive them 
of constitutional rights. When I was in France last September, Amer- 
icans told me that our American soldiers were so being deprived in their 

204 



Dwight D. Eisenhower, ig54 <fl 18 

opinion. Has that been brought to your attention in relation to any cases 
of American soldiers? 

the president. Well, in this complicated business of trying to make 
America stronger in the world, you do run into a variety of situations 
involving individuals. 

Now, I don't know what the people argue. The Status of Forces 
agreement was one for which I worked very seriously when I was in 
Europe, for this reason: fundamentally, any foreigner in the United 
States can be tried by a United States court if he commits a crime of 
any kind, and we have units of other nations come here occasionally. 
This same thing happens in a foreign country. 

Now, these people, let me point out, are our partners. In no case 
where we make agreements with other nations are we trying to establish 
or act like they're satellites. That is a philosophy that seems to me 
repugnant to the whole concept of freedom, of liberty. 

And remember this: the Status of Forces agreement, as I recall the 
provisions — after all, it is 2 years ago that I studied them — any crime 
that is committed between individuals of our units, they are tried by us; 
anything that happens when the man is on official duty, they are tried 
by us. 

The actual time when the man is exposed to some kind of action by 
a foreign court is when he is on leave, and he is in exactly the same 
status, as a practical measure, as you were when you went there. 

Now, if you had committed an offense in France, or wherever you 
were, would you have expected to come back to the United States to be 
tried? You would have been tried, and you would accept that risk when 
you go over there. 

The difference is that a soldier is ordered over, but he does have his 
post, he does have his unit, and it is still expected then that when he 
goes off of his own territory and goes off on leave, on his own personal 
status, that he does become responsible to their courts. Even there, 
there are certain safeguards in the way he is represented and the infor- 
mation given to our embassies. 

Now, this same thing applies to people who are here. All these 
treaties are reciprocal, and that is the thing to remember. They are 
arranged so as to do justice to the very greatest possible extent to the 
individual, and to meet national needs. 



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€| 1 8 Public Papers of the Presidents 

Q. Charles von Fremd, CBS Television: Mr. President, yesterday 
Senator Young said that during the campaign you always promised the 
farmers nothing less than 90 percent of parity, and he challenged your 
flexible price supports at 75 to 90 percent of parity. I would like to ask 
you, do your recent agricultural recommendations represent a change in 
your thinking on this matter, and if so, why? 

the president. Well, now, let me ask you one question: did you go 
to the trouble to read my speeches in the campaign? 

Q. Mr. von Fremd : Yes, sir; I did. 

the president. All right; then, did you find anything that said I 
ever promised permanent rigid price supports at 90 percent? Ever? 
Any place? 

Q. Mr. von Fremd: Mr. President, I am just referring to the re- 
marks of Senator Young yesterday. 

the president. I know, but I don't answer individuals; I answer 
questions directed to principles and ideas. I am not engaged in argu- 
ment with individuals. 

Q. Mr. von Fremd: My question then, sir, is your present plan, 
which you submitted on agriculture, does that represent in any way a 
change in your thinking? 

the president. None at all. 

Actually, what I promised was this : I said there is on the books a law, 
an amendment to the acts of '48 and '49, which carries rigid price 
supports through December of 1954; that law will be rigidly enforced, 
and there will be no attempt to tamper with it. 

In the meantime — and I promised this in every talk I ever made about 
agriculture — we will get together the most comprehensive, the most 
broadly based groups of actual farmers and farm students and agricul- 
tural intellectuals, and all the rest of them, get them together to devise a 
program that seems to meet best the needs of our country; that is exactly 
what I said. That is exactly what we have done, and we have come up 
with a program in which I believe. I believe it to be as nearly adapted 
to the needs of this country as we can possibly devise at this moment. 

Q. Marvin Arrowsmith, Associated Press: Mr. President, would you 
comment on Molotov's demands for a Big Five Conference including 
Red China and world problems? 

the president. Well, of course, my attitude about these things, I 

206 



Dwight D. Eisenhower, IQ54 ^ 18 

think, is known; but in any event we do have a conference now going 
on in Berlin to which our representative has gone. 

I have, as you know, I hope, the utmost confidence in Secretary 
Dulles and his wisdom, and I know there is going to be no change in 
policy. He is going to stick to and, so far as he is able in that conference, 
carry out the beliefs and policies of this Government. 

I don't think that it is in order for me to speak in detail of my opinions 
at the moment. He is now on the front line and is carrying out the job, 
and I am backing him up. 

Q. Robert Spivack, New York Post : The Peiping radio, I understand, 
has been having a propaganda field day with the case of Corporal 
Dickenson, and while I am sure that he will be given a fair trial, I 
wonder if you feel that there is any better way of handling the cases 
of these men who admit their mistake, and had the courage to break 
with the Communists. 

the president. I have two remarks on that: I was so disturbed when 
I saw it in the paper that I got hold of Secretary Wilson, and we dis- 
cussed it. 

By no means do I think that this investigation was started merely be- 
cause the man had been for a moment saying he believed he'd stay 
Communist and stay over there. 

I think there must be something else to it, although I personally am 
not very well informed on that. This is the fact: they said they were 
going to put him, I believe, before a court-martial. Actually, any court- 
martial in the Army — and here I can speak from a little bit more experi- 
ence — is preceded by a very long investigative process. 

If, say, you put a man in to prefer charges against him, those charges 
are handed to an impartial and objective group, sometimes individuals, 
sometimes a group, and a long investigation goes through to determine 
whether there are real grounds for trying this man. 

That investigation will, just as a matter of law, take place ; and I know 
that Secretary Wilson himself is keeping close touch with it to see that 
no injustice is done. 

Certainly, I am sure that I know of no Army man or anybody else who 
would punish a man for a simple mistake committed under the most try- 
ing of circumstances, and who later repented. After all, we can read 
the tale of the prodigal son profitably occasionally. 

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<][ 1 8 Public Papers of the Presidents 

Q. Daniel Schorr, CBS Radio: Mr. President, aside from the Dick- 
enson case, as such, do you have any thoughts on the whole vexing problem 
confronting this country in the form of those who signed germ warfare 
confessions, and those 2 1 who remained behind? 

the president. Well, the 2 1 who remained behind, I don't know of 
anything you can do, except to take the action the Services did. Secre- 
tary Wilson just decided to separate them from our Services under dis- 
honorable conditions. 

Now, for these people who come back, I think there has to be a real 
investigation and study to see what to do with them. 

We must not, sitting here in the comparative safety of Washington — 
there are dangers of another kind, at least — [laughter] — let us not be too 
sure of what we would have done under these same circumstances. 

What I would hope that the Services do as they investigate this thing 
is to have some real sympathy in their hearts as they look into it. And 
I must say this: my own experience, my long experience with the armed 
services, was that usually you can find there the full average measure 
of decency and humanity when you are forced into this business of 
judging and passing judgment upon the weaknesses or failures of others. 
I think that there will be no attempt on the part of anybody to be harsh 
in these cases. 

Q. Robert L. Riggs, Louisville Courier- Journal : Mr. President, we 
took up with Mr. Brownell the matter of breaking down these 2200; 
that was on your advice, I believe. Mr. Brownell said we ought to go 
to the Civil Service Commission, and I see by the papers that Mr. Young 
of the Civil Service Commission has notified a Congressman that it is 
up to the White House and the National Security Council. We are 
going around in circles, are we not, sir? 

the president. Well, probably what he said is because he is com- 
pelled, under an Executive order that I issued some time back, to make 
reports to us; I hadn't thought of that when I mentioned it before. You 
see, the Attorney General drew up this security order, as opposed to the 
so-called loyalty boards and so forth, and I was thinking of him as a 
man who was more intimately aware of the circumstances than I was. 

Now, it is possible that there is some kind of a time thing on it; but on 
the other hand, I don't know whether there can ever be any real break- 
down into specific categories that you people might like. 

208 



Dwight D. Eisenhower, ig$4 CJ 18 

I will have to ask Chairman Young myself what this thing is develop- 
ing into. But as far as I am concerned, I am trying to protect the service 
of the United States and do no one damage, if I can help it. That is 
the reason I answered one question awhile ago that I believe there ought 
to be some way of showing when people are separated with complete 
honor and for reasons of their own, and when they are just something 
else. 

But a poor security risk — I am not going to say that what we deem 
to be a poor security risk under statements made on the record reaching 
clear back into babyhood, I am not going to say that he is a disloyal 
person; I just won't do it because I don't necessarily believe it. 

Q. Mr. Riggs: Sir, a moment ago you said you were not aware of 
anyone who used any such terms. Governor Dewey has used the words 
"spies and traitors," and then referred to 1400 security risks. 

the president. When I said anyone, I meant anyone that was 
within this administration. I am sorry. 

Q. Norman Carignan, Associated Press: Mr. President, last Thurs- 
day you held a meeting at the White House with your brother, Dr. 
Milton Eisenhower, and several Cabinet officers and other Government 
officials dealing with Latin America. And I gather it dealt with the 
loan policy towards Latin America. I wonder if you could tell us some- 
thing about the meeting and any conclusions reached? 

the president. I merely can say this: the meeting ended with an 
agreement that there would be an intensive study by several of the inter- 
ested agencies as to exactly what some of these specific problems are, and 
whether there should be any change in policy as of now. I would think 
it would be a little while before their answers would be available. 

Q. Edward Sims, Columbia (S.C.) State and Record: Ever since you 
made the statement in Augusta about unemployment areas and defense 
contracts for unemployment areas, there has been, of course, intense 
interest in my section and other sections; and this morning there is a 
report out that you have assured or the Government has assured — not 
you personally — 20 percent of the defense contracts to unemployed areas. 
Is that something new? Would you comment on that at all? 

the president. In no case do I think there is a fixed rule of that kind. 
For example, suppose you are going to build a ship, how can you take 
20 percent of a ship and put it some place else? Certain things just 
have to be done as units. 

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<J[ 1 8 Public Papers of the Presidents 

As I explained to you before, the great mass of these procurement 
orders will go out in the normal routine manner, lowest bidder and 
lowest responsible bidder, and that is that. 

The law allows the withholding of a certain percentage — even that can 
differ — that can be put out then for negotiated bids as long as the bid 
is as low as the lowest bid you got in the normal line of communication. 
I believe that 20 percent is merely the maximum, that is what I 
understand. 

Q. Jerry O'Leary, Washington Evening Star: Mr. President, do you 
see any signs of agreement between the opposing sides on the Bricker 
amendment? Do you have any information of a possible agreement? 

the president. Well, I can only say that certain of my associates 
down on the Hill keep hoping for it. So far as I know, there is nothing 
different from what you see in the papers. 

Q. Richard Wilson, Cowles Publications: Some people have charac- 
terized your legislative program as an extension of the New Deal. I 
think former President Truman is one that has done that. Would you 
care to comment or discuss that? 

the president. I think the best comment on that is to go and take a 
look at the budget. Take a look at the budget he proposed, and what we 
did, and the direction in which we are going. 

Q. Mr. Wilson : How would you draw a distinction between the two? 

the president. The difference in the direction in which it would go. 
One was going further and further into debt and at an increasing rate; 
and the other is trying to reduce the expenditures of Government and go 
the other way. 

Now, let me point out: there were a number of things that started 
in the late 1920's and early 1930's that were continued on throughout 
the New Deal. The RFC notably is one. 

I don't think anyone attempts to say that everything that was done by 
some political opponents, or by a political school in which he did not 
believe, is necessarily evil or bad for the country. I believe our job, I 
believe the job of this administration or any other that will come after it, 
is to take the situation as it exists, and what is good for the country. 

I believe that we use titles, appellations, what do you call them, mean- 
ings of words that seem to get all confused — liberal, progressive, and all 
the rest of them. Nevertheless, I think it would be safe to say this: 



210 



Dwight D. Eisenhower, ig$4 <J 1 8 

when it comes down to dealing with the relationships between the human 
in this country and his Government, the people in this administration 
believe in being what I think we would normally call liberal; and when 
we deal with the economic affairs of this country, we believe in being 
conservative. 

Now, I quite admit that there can be no distinct line drawn between 
the economy and the individual, and I am ready to say also that such a 
little capsule sort of description of an attitude can be pulled to pieces if 
you want to. But, in general, that is what we are trying to do. The 
difference here is that the Government's position, the Government's 
growth, the Government's activity under this new administration is to 
try to have its functions in conformity with the Constitution of this coun- 
try; but in doing so, to make certain that the individuals realize that 
Government is a friend and is not their enemy in any way. 

That is, by all odds, certainly an abbreviated answer to such a question, 
but I do think that all the way along we have showed the difference 
between this philosophy, the philosophy of this Government, and that of 
the New Deal. 

Q. James Reston, New York Times: I wonder, sir, if you can give us 
any report about the Atomic Energy discussions you have had with the 
Soviet Ambassador, or rather that Mr. Dulles has had. 

the president. No, there is no report at this time. I don't know 
when there will be one, actually. 

Q. Robert Clark, International News Service: Mr. President, your 
social security message would seem to have answered this, but I have been 
requested to ask you whether the administration has abandoned its orig- 
inal proposal to cut back to i J4 percent social security tax. 

the president. Well, last year, of course, I asked for its freezing for 
a year. Now my recommendations extend social security to something 
like ten million more people and increase the benefits, and it seems to us 
necessary to allow the 2 percent to go into effect. 

Merriman Smith, United Press: Thank you, Mr. President. 

note : President Eisenhower's twenty- 11:02 o'clock on Wednesday morning, 
fifth news conference was held in the January 27, 1954. In attendance: 185. 
Executive Office Building from 10:33 to 



211 



<J i g Public Papers of the Presidents 

1 9 ^ Remarks of Welcome to President Bayar of 
Turkey. January 27, 1954 

President and Madame Bayar: 

It is a great privilege to speak for the American people and the 
Nation's Government in bidding you welcome here to the Capital. 

On the personal side, Mrs. Eisenhower and I are very proud to have 
you, the Head of the great and friendly State of Turkey, as guests at 
the White House. 

note: The President greeted President American soil. 

Gelal Bayar and Mme. Bayar on the I was very happy to accept the very 

North Portico of the White House at kind invitation of that great soldier and 

5:00 p.m. A translation of President statesman, your President Eisenhower, 

Bayar's reply follows : and of Mrs. Eisenhower. I am very proud 

I can hardly express the emotions that to convey to them and to the American 

I feel at the warm acclaim that I have people the warm affection and the greet- 

received ever since I have set foot on ings of my Nation. 

20 ^ Toasts of the President and President Bayar 
at the White House. January 27, 1 954 

Your Excellency, Madame Bayar, distinguished guests of two countries: 
Tonight, this company — this Capital — this country — is honored by the 
presence at this board of the Head of the Turkish Republic. We gladly 
seize the opportunity afforded us by his presence, to salute a nation 
which is one of the most gallant and staunchest defenders of freedom in 
the modern world. 

The evolution of Turkey, taking place within the span of a single 
generation, is one of the marvels of our time. Fifty years ago — and there 
are a number of us here who can remember that long — the events, the 
names, and the faces of Turkey were little known to us. Our under- 
standing of the country and its people was very meager indeed. 

And then the change. Today we recognize it as a modern, progres- 
sive country, one that we are proud to call ally in the great problems that 
face the free world today. This great change was brought about by a 
dream of a group of men, a group of men headed by Mustafa Kemal 
Ataturk. He had a dream that with a band of devoted associates they 
translated into reality — by service, unselfish and dedicated service, to 

212 



Dwight D. Eisenhower, ig54 ^ 20 

their country. Forgetting themselves, they gave their lives and their 
talents to the nation to which they belonged. 

And since 1923 we see the transformation that has taken place. Now 
the great Ataturk is dead, but his work lives on, and our guest of honor 
this evening is one of the original band that worked with him to bring 
about this great change, and to make Turkey the nation she is today: 
great, and growing greater every day. 

Our guest of honor, since that day in 1923, has been almost contin- 
uously in the Assembly of his country. He has held almost every position 
in his government, including that of Prime Minister, and now is honored 
by holding the highest position in the land. 

In a feeble effort to show some of the appreciation of this Government 
and its people, for Turkey as a nation and its people, our Government 
has awarded to our guest of honor the Legion of Merit in the grade of 
Chief Commander, the highest honor that this Government can give to 
anyone in time of peace not a citizen of this country. And with your 
permission, I shall read the Citation: 

"The President of the United States of America, authorized by Act 
of Congress July 20, 1942, has awarded the Legion of Merit, Degree of 
Chief Commander, to Celal Bayar, President of the Turkish Republic, 
for exceptionally meritorious conduct in the performance of outstanding 
services: 

"The Turkish people have shown their confidence in Celal Bayar by 
entrusting him with high offices throughout his long public career, but 
especially when he was honored by being placed in the highest and most 
responsible position in Turkish public life — that of the Presidency of the 
Republic. In this high office, he has contributed greatly to the enrich- 
ment of that goodwill which characterizes the relationship between 
Turkey and the United States. Under his firm leadership, Turkey has 
continued to actively support those ideals which are cherished by free 
peoples everywhere, thus contributing effectively to the hopes for freedom 
and peace throughout the world." Signed by the President. 

Now, my friends, as we lift our glasses to our guest of honor, let us 
remember that through him we do so, also, to the great nation of Turkey 
and its people — a people whose future we shall watch with interest, and 
wish for them everything that is good in a free world. 

Ladies and gentlemen, President Bayar of Turkey. 

5198&— 60 17 2I 3 



q 20 



Public Papers of the Presidents 



note: The President proposed this toast 
at a state dinner at the White House at 
9:45 p.m. President Bayar responded 
in Turkish. Thereafter the following 
translation was read by John F. Simmons, 
Chief of Protocol : 

Mr. President: 

I am deeply moved by the warm re- 
ception and the manifestations of genuine 
friendship which I have experienced since 
I set foot on American soil. 

I am particularly happy, as your guest 
this evening, to enjoy your solicitous hos- 
pitality in this legendary residence. 

The emotion that I felt on listening to 
your kind words about my country was 
not only stirred by the sincere feelings 
which you so well expressed, but it was 
also due to the fact that I realized how 
well this country understood the revolu- 
tion which has taken place in my country 
since the day that, under the leadership 
of one of her sons devoted to the cause of 
civilization and humanity, she changed 
her destiny until the day she won her 
place in the community of free countries 
and assumed her duties in the service of 
humanity. 

There is no doubt that the words that 
you, a great general and outstanding 
statesman, have spoken as the highest 
authority of the great American nation, 
will be a source of endless joy to all my 
countrymen. 

I also wish to thank you for your kind 
and gratifying words about myself. As 
you have said, I do in fact cherish the 
moral satisfaction of having worked to- 
gether, from the first day to the last, with 
Kemal Ataturk, the saviour of my coun- 
try, the founder of modern Turkey, and 
the architect of the Turkish Revolution. 

But the group who rallied under Ata- 
turk and who were then called "the na- 



tional force," are a symbol of the Turk- 
ish nation who pinned their destiny on 
him in the cause of a free and independ- 
ent Turkish land, and for the ideal of a 
free and independent world according to 
the highest human concepts. 

Today, these goals of the Turkish na- 
tion have been attained. Turkey shares 
the responsibility of a common fate with 
those nations of the free world who are 
making sacrifices for their liberty and 
independence. The happiest manifesta- 
tion of that is in the firm ties which bind 
our two countries to each other. 

I am very proud to hear that your gov- 
ernment has decided to confer upon me 
the Legion of Merit, which is the highest 
award given in time of peace to a foreign 
citizen, in recognition of his services. 

I accept this great honor, fully con- 
scious of its worth, as a valuable token 
of the friendship of the American people 
towards my nation, which at the moment 
I represent on friendly American soil. 

Turkey considers it a human and na- 
tional duty to cooperate with the peoples 
who are striving for the realization of the 
ideals of a free world and genuine peace. 
No matter how strenuous and dark may 
be the road that leads to that objective, 
she is determined to walk hand in hand 
with her allies. For the Turkish nation, 
liberty is the mainstay of life. And I am 
convinced that the souls of the Turkish 
and American nations find communion 
on that motto above everything else. 

When, therefore, our sons shake each 
other's hand on the road on which our 
countries are determined to walk arm in 
arm, they feel the mutual determination 
and confidence of two great spirits. 

I raise my glass to your health, and to 
the health of Mrs. Eisenhower. I drink 
to the happiness and prosperity of our 
great ally, the United States. 



214 



Dwight D. Eisenhower, igs4 <]} 21 

21 ^ Annual Message Transmitting the 
Economic Report to the Congress. 
January 28, 1954 

To the Congress of the United States: 

I am herewith presenting my Economic Report, as required by Section 
3 (a) of the Employment Act of 1946. 

In preparing this Report, I have had the assistance and advice of the 
Council of Economic Advisers. I have also had the advice of the heads of 
executive departments and independent agencies. 

I present below, largely in the words of the Report itself, what I con- 
sider to be its highlights. 

OUR OBJECTIVES 

A great opportunity lies before the American people. Our approach to 
a position of military preparedness now makes it possible for the United 
States to turn more of its attention to a sustained improvement of national 
living standards. 

Our economic goal is an increasing national income, shared equitably 
among those who contribute to its growth, and achieved in dollars of stable 
buying power. 

Sustained economic growth is necessary to the welfare and, indeed, to 
the survival of America and the free world. 

Although American living standards on the average are now higher 
than ever, there are certain groups whose consumption is much less than 
it should be. We can in our lifetime go far toward eliminating sub- 
standard living. 

A steadily rising national income is the best assurance of harmonious 
social and economic adjustments. There can be no lasting harmony in a 
nation in which competing groups and interests seek to divide a constant 
or shrinking national output. 

ROLE OF GOVERNMENT 

The demands of modern life and the unsettled status of the world re- 
quire a more important role for Government than it played in earlier and 
quieter times. 

It is Government's responsibility in a free society to create an environ- 

215 



C][ 21 Public Papers of the Presidents 

ment in which individual enterprise can work constructively to serve the 
ends of economic progress; to encourage thrift; and to extend and 
strengthen economic ties with the rest of the world. 

To help build a floor over the pit of personal disaster, Government 
must concern itself with the health, security and welfare of the individual 
citizen. 

Government must remain alert to the social dangers of monopoly and 
must continue vigorous enforcement of the anti-trust laws. 

Government must use its vast power to help maintain employment and 
purchasing power as well as to maintain reasonably stable prices. 

Government must be alert and sensitive to economic developments, in- 
cluding its own myriad activities. It must be prepared to take preventive 
as well as remedial action ; and it must be ready to cope with new situations 
that may arise. This is not a start-and-stop responsibility, but a contin- 
uous one. 

The arsenal of weapons at the disposal of Government for maintaining 
economic stability is formidable. It includes credit controls administered 
by the Federal Reserve System; the debt management policies of the 
Treasury; authority of the President to vary the terms of mortgages carry- 
ing Federal insurance; flexibility in administration of the budget; agricul- 
tural supports; modification of the tax structure; and public works. We 
shall not hesitate to use any or all of these weapons as the situation may 
require. 

THE CURRENT SITUATION 

The year just closed was very prosperous with record output, widely 
distributed incomes, very little unemployment, and prices stable on the 
average. 

In the second half of the year there was a slight contraction in business 
leading to unemployment in some localities. This was due mainly to a 
decline in spending by businesses for additions to inventory. Other cate- 
gories of spending, notably retail sales, have been well sustained. 

Our economic growth is likely to be resumed during the year, especially 
if the Congress strengthens the economic environment by translating into 
action the Administration's far-reaching program. 

BASIS FOR CONFIDENCE 

The removal of wage and price controls, the stopping of price inflation, 
the development of new products available to consumers, and the im- 

216 



Dwight D. Eisenhower, ig$4 ^ 21 

proved economic condition of the nations of the free world constitute an 
unusual combination of favorable factors for the future. 

While Federal expenditures were being cut in many directions during 
the past year, outlays on research and development grew and came to 
2 l /z billion dollars out of a total national expenditure on research of 4 
billion dollars. Research has already given us many new industries and 
products, including atomic energy, radioactive isotopes, electronics, heli- 
copters, jet engines, titanium and heat resistant materials, plastics, syn- 
thetic fibers, soil conditioners, and many others. Outlays on the building 
of new knowledge must continue since they are our surest promise of ex- 
panding economic opportunities. 

Because of billions of dollars of savings in Government spending made 
in this Administration's first year, major tax cuts went into effect on Jan- 
uary 1. More than 5 billion dollars of tax savings are now being left 
with the American people to increase their purchasing power this year. 
More will be released to taxpayers as rapidly as additional savings in 
Government expenses are in sight. 

Also favorable to the maintenance of high consumer expenditures 
growing out of high personal incomes is our wide diffusion of wealth 
and incomes and the strong urge of Americans to improve their living 
standards. 

Expenditure plans of American business for plant and equipment con- 
stitute a powerful support for economic activity. 

Despite the record volume of home building in recent years, there is 
still a good market for housing in this country. Vacancies in our cities, 
with few exceptions, are below the level necessary for a healthy competi- 
tive market. 

A continued rise in State and local expenditures may be expected. 
There is still, in most parts of the country, a vast backlog of needed 
schools, highways, hospitals, and sewer, water and other facilities. 
Federal expenditures will remain a significant sustaining factor in the 
economy. 

Our financial institutions are fully capable of meeting all reasonable 
credit demands and are in condition to withstand successfully any strains 
to which they may be exposed. 



217 



<][ 2 1 Public Papers of the Presidents 

MEASURES TO STRENGTHEN THE ECONOMY 

To protect and promote economic stability we should take bold steps — 
by modernizing unemployment insurance; by broadening the base and 
benefits of old-age insurance; by permitting a longer "carry-back" of 
losses for tax purposes; by granting broad discretionary authority to the 
Executive to alter, within limits and appropriate to changing circum- 
stances, the terms of governmentally insured loans and mortgages; by 
establishing a secondary home mortgage market; and by making im- 
provements in the planning of public works programs. 

To stimulate the expansive power of individual enterprise we should 
take action — by revising the tax laws so as to increase incentives and to 
remove certain impediments to enterprise, especially of small business; 
by improving credit facilities for home building, modernization, and 
urban rehabilitation; by strengthening the highway system; and by facili- 
tating the adjustments of agriculture to current conditions of demand 
and technology. 

CONCLUSION 

Employment in January, 1954, is somewhat lower than in January, 
1953. There seems to be a connection between this fact and the fact that 
in January, 1953, we were still fighting in Korea and are not doing so 
today. We can make the transition to a period of reduced mobilization 
without serious interruption in our economic growth. We can have in 
this country and in the free world a prosperity based on peace. 

There is much that justifies confidence in the future. The Government 
will do its full part to help realize the promise of that future in its program 
to encourage an expanding and dynamic economy. 

Dwight D. Eisenhower 

note: The message and the complete re- nomic Report of the President, 1954" 
port (225 pages) are published in "Eco- (Government Printing Office, 1954). 

22 *§ Address Recorded for the Republican 
Lincoln Day Dinners. January 28, 1954 

My fellow Americans: 

You are gathered in this meeting as active, devoted members of a 
political party. As such, you give of your time, your thought, and your 

218 



Dwight D. Eisenhower, ig54 ^ 22 

effort to the most important business I know — the public affairs of your 
country. 

You concern yourselves with the conduct and management of gov- 
ernment — from the smallest political unit to the topmost levels of the 
Federal Administration. You are, therefore, in politics — even though 
you may hold no appointive or elective office. And you should, it seems 
to me, wear your political badge with some considerable pride. For 
politics ought to be the part-time profession of every citizen who would 
protect the rights and privileges of free people and who would preserve 
what is good and fruitful in our national heritage. 

Politics must be the concern of every citizen who wants to see our na- 
tional well-being increased and our international leadership strengthened. 
In that combined sense, politics is the noblest of professions. In the ranks 
of that kind of politics, every American should be enrolled. 

You are so enrolled. You chose to enlist in this political endeavor 
under the banner of the Republican Party. 

It so happens that I made the same choice. 

I hope that we reached our separate and individual decisions in this 
important matter for similar reasons and as a result of sincere conviction. 
For a political party is an instrument to translate into effective action the 
aims and aspirations of the people. It is therefore essential that the 
members of a political party — if the party is to be effective — join together 
to reach a common goal. Unless there is unified support of broad political 
policy, there is no true political party. 

Only in unity can the strength of each of us be multiplied by the total 
number of all of us. Only in such multiplication of strength can the 
impact of our efforts be felt with equal force in the Nation's smallest pre- 
cinct and in the Nation's Capital, alike. 

We must generate such an impact if our party — the Republican 
Party — is successfully to meet the responsibilities of national leadership 
with which it has been charged by our people. 

We will meet that challenge with success if, as we celebrate this one- 
hundredth anniversary of our party, we seize the opportunity to review 
its origins and to consider and apply the political philosophy of its first 
great leader. 

A century ago, our party was born as a result of many meetings of 
little-known men in many sections of the country. Another little-known 



219 



C| 22 Public Papers of the Presidents 

man in Springfield, Illinois, becoming the leader of that party, later 
became a "Man of the Ages." 

This month, we celebrate his birth and the birth of the party he led. 
But in every season and in every year and in every month, the man and 
the party are inseparably linked, one with the other. 

In Abraham Lincoln as in no other man, in the wisdom of his states- 
manship and in the vast sympathy of his human concern was concen- 
trated the rich promise of our Republican Party. 

Beyond all others of his day or since, he most effectively inspired our 
party to serve the Nation's good — both of the moment and for the cen- 
turies. With the country facing the terrible threat of disunity, he made 
his and the party's first purpose the preservation of the Nation. 

From the very moment he repeated the oath as president until the 
tragic end, Abraham Lincoln's every act and every word were clearly 
aimed, shaped, sharpened, and designed to serve that single purpose — 
the preservation of our country. 

In the Emancipation Proclamation, at Gettysburg, in his two great 
inaugural addresses, in countless other utterances and statements — in 
private letters to friends and critics, within his Cabinet and to the 
public — over and over and over again, always he seemed to be saying — 

We are the trustees of the American heritage. 

In this time, in this tragic war, we have but one responsibility — 
the protection of that heritage. Every thought we hold, every action 
that we take, every sacrifice we make — all these must be dedicated, 
single-mindedly, to this task. We must leave to the future an 
America that is whole, intact, strong, united — and still the land of 
freedom. 

We are the trustees of the American heritage. 
Tirelessly and stubbornly he repeated it. Every tortuous moment of 
those last 4 years, he lived it. 

Through his success, you and I are today the trustees of that same 
heritage. We, in our time, must pass on to our children's children this 
America — strong and still the land of freedom. 

"The legitimate object of government," declared Lincoln, "is to do for 
a community of people whatever they need to have done, but can not 
do at all, or can not so well do, in their separate and individual 
capacities." 

220 



Dwight D. Eisenhower y IQ54 1$ 22 

So, preoccupied though he was with the crisis of impending secession 
and the onrushing tragedy of civil war, he clearly realized that other and 
continuing responsibilities of government had to be met if this Nation was 
to remain whole, intact, strong, united, and still the land of freedom. 

The same simple but basic philosophy of government he then expressed 
is still the best guide for the men and women whose official responsibility 
it is today to direct the legislative and executive affairs of our Nation. 
Their measure of success will be determined in the degree that they are 
able to absorb and apply the teachings of that great leader. 

In his first inaugural address, Abraham Lincoln also said, "This country 
belongs to the people who inhabit it." And, at the same time, he made it 
clear that when the people grow weary of their existing Government, they 
have the constitutional privilege of changing its course. 

Fifteen months ago, the American people — seemingly weary of the 
course their Government was taking at the time — exercised their constitu- 
tional rights and changed that course. You and other hard-working 
party members like you, aided by millions of Americans of other or no 
party allegiance, played a vital part in that process — in your neighbor- 
hoods and communities, in your counties and your States. 

And with victory came added responsibility. On you today — as poli- 
ticians in the finest meaning of the term — and on your leaders — rests the 
responsibility of justifying now and for history the mandate of November, 
1952. That mandate requires that always we address ourselves to the 
preservation of this Nation against threat of any kind from any quarter 
whatsoever. We must preserve its basic system and the freedoms it 
guarantees to its citizens. It requires also that we share Lincoln's con- 
cern for the proper role of government in helping and protecting all our 
citizens. 

It was in such concern that there was recently placed before the Con- 
gress this administration's program for consideration and translation into 
law. Through our unified action, that program will secure our country 
against the threats of our time and will be doing for our people those 
things they cannot well do for themselves. 

We will justify the people's decision of 1952 only as we attract — with 
our program — new and willing workers to our ranks; only, with those 
workers, as we learn the habit and spirit of teamwork; only, with Lincoln, 
as we remember and apply the wise counsel he gave us in his Second An- 
nual Message when he said : 

(51986—60 18 221 



<][ 22 Public Papers of the Presidents 

"The dogmas of the quiet past are inadequate to the stormy present. 
The occasion is piled high with difficulty and we must rise with the oc- 
casion. As our case is new, so we must think anew and act anew." 

For we know that each day the world is new, that the problems each 
day brings are new. But we know also that, though these tasks are new, 
the approach to them is still the Lincoln approach. 

To be dedicated to a single purpose — the freedom, strength, pros- 
perity, and peace of America — and to strive with all that's in us to ad- 
vance the welfare of her citizens — that is the forward way we must seek 
for America. That is the legitimate purpose of Lincoln's party — a century 
ago, today, and always. 

note: The President's Lincoln Day ad- Lincoln Day Dinner of the Republican 

dress was recorded on film for use by the State Central, County, and Town Com- 

Republican National Committee. The mittees of Rhode Island, held on January 

film was shown for the first time at the 28 in Providence. 

23 ^ Toasts of the President and President Bayar 
at the Turkish Embassy. January 29, 1 954 

Your Excellency, Madame Bayar, my friends: 

A very wise teacher that I greatly admired once observed to me that life 
is made up of friendships, friendships of various kinds, it is true, and in 
each case the qualities appropriate to the relationship that exists between 
the peoples or the groups. 

In the world today, there is a free world — and its opponent is a world 
that is ruled by dictatorial processes behind the Iron Curtain. 

The free world is bound together by friendships. The world behind 
the Iron Curtain is bound together by force, or the threat of force. 

If these friendships are strong, then the free world will have unity. And 
we well know that in unity is strength, as in disunity is weakness and 
destruction. 

The United States has sought friends, and will continue to seek friends, 
in this world; and it will measure friendships in those qualities that we 
call the ennobling virtues of man: his courage, his capacity for self- 
sacrifice, his readiness to stick by his friend until the end — courage, 
stamina, gallantry. 

It is in these terms and these qualities that we so value our friendship 
with Turkey. We have found her — we have proved her, on the fields 

222 



Dwight D. Eisenhower, 1954 <§ 23 

of Korea, for our sons are buried together, where numbers of them fought 
shoulder to shoulder — we have found them to be a nation of courage, of 
gallantry, of stamina. 

To a friendship of this kind, one that has been forged and maintained 
in common recognition of these values, there are always two others: 
confidence and faith. 

This evening, as I stand here, I say to you, with no shadow of doubt 
in my mind, that if the free world can be bound together in its entirety 
by the kind of friendship that binds America and Turkey, we have no more 
reason to fear the people behind the Iron Curtain than we have to fear 
ourselves as we sit here at this gorgeous board. [Applause] 

And so, President Bayar, I am sure that those of my countrymen that 
are gathered this evening would want me to express to you something 
more than the polite courtesy that is due to the Head of a State on a visit 
to this Nation's Capital. They would want me to try to say that we value 
you and your visit as symbolic of a friendship that exists between our two 
countries. We value your visit because you bring to us something deeper 
than anything else in this world : true friendship. 

And so, sir, with your permission, we raise our glasses to you, to Madame 
Bayar, and to Turkey. 

note: This toast was proposed at 10:05 General and experienced statesman like 
p.m. in response to a toast by President yourself is at the head of the American 
Bayar at a dinner which he gave in honor democracy, which has undertaken great, 
of President Eisenhower at the Turkish historical responsibilities. 
Embassy. Immediately after the Presi- We learn with gratitude of your mag- 
dent finished speaking, President Bayar nanimous proposal, calling for the inter- 
added in English "And to my hostess." national use of atomic energy in the 
The toast proposed by President Bayar service of the prosperity and health of 
was given in Turkish. An English trans- mankind. Whatever may be the out- 
lation was then read as follows: come of this epoch-making proposal, 
_ - _ ... , , which constitutes the most incontroverti- 
Mr. President, ladies and gentlemen: Mc evidence of the goodwi ii of the f ree 

I am happy to greet you and Mrs. world, history will always praise your 

Eisenhower to this Embassy. Having for country and yourself for this sublime 

many years occupied the center of world endeavor. This worthy and humane 

attention in the military and political initiative has proved once again in the 

field, you have since acquired renewed eyes of the world the strength of the 

stature by being elected to your present moral principles forming the basis of 

position of supreme responsibility, show- United States foreign policy, which has 

ing the confidence that your great nation the safeguarding of peace as its main aim. 

has displayed in you. However ardent may be the love of 

The people of Turkey are gratified to peace which pervades our spirits, a glance 

know that in the trying times that we at international relations is sufficient to 

must all endure in our quest for peace show that what the free world has so far 

and safety, a victorious and glorified achieved in the search for peace is yet a 

223 



<| 23 Public Papers of the Presidents 

long way from giving us the possibility to of the world untainted with the vices of 

relax the efforts which we must make to envy, greed, and grudge, 

attain that objective. No solution has as The American people, who in the per- 

yet been found for any of the difficulties ilous years have set the whole world an 

which cause the restlessness of the world. example of idealism and magnanimity, 

Under these conditions, we have to may rest assured that they have found in 

keep up conscientiously our defense ef- the Turkish nation a firm companion on 

forts, while we lend renewed vigor to our whom they can rely in every way. The 

genuine endeavors for the attainment of sons of Turkey have fought shoulder to 

peace. I am confident that we shall win shoulder with your sons under the ban- 

the peace that will provide for mankind ner of the United Nations, as a symbol of 

a life of liberty free of menace. the human virtues of right and liberty, 

It is the duty of nations who can grasp who have together performed legendary 

realities to walk toward that goal with deeds under an able command, and who 

determination, solidarity, and without have died together for a great ideal, 

being carried away by delusions. A signpost which stands on one of the 

Ever since the day we proclaimed our frontiers of Turkey reads : "We Turks are 

Republic, we Turks — who are firmly at- proud of our nation, and are prepared to 

tached to our motto of "Peace at home, die for it." That motto sums up the out- 

and Peace abroad" — have believed that look on life of the Turkish people, 

the most effective measure to prevent war Mr. President, I drink to your health, 

is to set up an international organization and to the health of Mrs. Eisenhower, 

capable of convincing any prospective and to the happiness and prosperity of 

aggressor that aggression will not meet the American nation, 
with impunity, and to bring up citizens 

24 ^ Statement by the President Upon Signing 
Bill Amending the Agricultural Adjustment Act 
of 1938. January 30,1954 

I HAVE TODAY approved H.R. 6665, "To amend the Agricultural 
Adjustment Act of 1938, as amended." 

The principal purpose of the bill is to alleviate the great hardship on 
many cotton farms that would result from the severe production adjust- 
ments required under existing legislation. This is accomplished by in- 
creasing the national acreage allotment and modifying the method of 
apportioning that allotment to farms. 

The bill also would permit the Secretary of Agriculture with respect 
to the 1954 and 1955 crops of wheat to increase acreage allotments and 
marketing quotas for any class or subclass of wheat determined to be in 
short supply. At the present time, there is a shortage only of amber 
durum wheat, which is used in the milling of semolina. Semolina is a 
type of wheat flour that is used exclusively in the manufacture of maca- 
roni, noodles, and spaghetti. 

224 



Dwight D. Eisenhower, JQ54 <][ 25 

Finally, this legislation removes the prohibition against the use of funds 
provided under Section 32 of the Agricultural Adjustment Act for ex- 
tending assistance to the potato industry. It must be clearly understood 
that this action provides no basis for a program which might result in 
the dumping or destruction of potatoes. This is as it should be. 

note: As enacted, H.R. 6665 is Public Law 290, 83d Congress (68 Stat. 4). 

25 <§ The President's News Conference of 
February 3, 1954. 

the president. Good morning. 

I think that the only statement I have this morning is my apologies 
for being 5 minutes late. Time slipped by on me. We will go right to 
questions. 

Q. Merriman Smith, United Press: Mr. President, does this Govern- 
ment know the whereabouts of the Russian Far Eastern Mission member, 
Mr. Rastovorov? 

the president. I have had no detailed reports on it. 

Q. Charles Lucey, Scripps-Howard : Mr. President, will you prefer 
some kind of congressional check on treaty-making power or would you 
prefer to see no bill at all passed? 

the president. Well, Mr. Lucey, I have tried to make my position 
clear on this several times. There is undoubtedly an honest fear through- 
out the United States that the treaty-making power can be used to con- 
travene or to supersede our Constitution. In order to reassure America's 
population on this score, I am ready to do anything, even if it requires 
some kind of language in the Constitution. 

When it comes to anything, however — and this is where I stick and 
will not compromise one word — when it comes to the point of using any 
amendment to change or alter the traditional and constitutional balances 
of power among the three departments of Government, a feature of our 
Constitution that is the very genius of our whole system of government, 
I won't compromise one single word. That is exactly where I stand. 

Q. Robert Donovan, New York Herald Tribune: Sir, on the same 
subject, this Bricker amendment, it is very complicated, and it has now 
gotten into a very complicated tangle on the Hill. Do you think, sir, it 

225 



<J 25 Public Papers of the Presidents 

is wise to try to thrash this out without having a new look at it in com- 
mittee, in view of the technicalities that have now piled up? 

the president. Of course, I am not going to comment on the proc- 
esses used in the Senate, but I must say it is a complicated matter. 

As you people know, it absorbs the time of great numbers of people, 
studies and arguments. It is very, very intricate, and I go back again 
and again that that Constitution has served us very well for 165 years. 
Maybe individuals at times have abused it or maybe here and there we 
haven't been too accurate in our interpretations — because we have had 
reversals in interpretations. But, by and large, those people did a job 
that I don't want to trifle with too much, and unnecessarily. So I do 
believe that these things must be soberly studied. They must not become 
in the slightest degree partisan. They must be examined in what is the 
long-term good of the United States, what is going to be the effect of 
this two decades from now, and what is it going to be next year. Let's 
not be in a hurry about such an important thing. 

Q. Laurence Burd, Chicago Tribune : Mr. President, there is a report 
in the news this morning that we have sent 125 air technicians to Indo- 
china to service our bombers over there, and that France has requested 
400 more. Do you know, sir, whether we have military personnel in Indo- 
china, and what our plans are on that? 

the president. In many countries of the world we have not only 
military attaches and their staffs, we have large military missions. 

In Indochina, as in numbers of other countries, we have military mis- 
sions. We do not put people there as fighting units. They are training 
and technical missions of all kinds, they vary in size, and that is all there 
is to say on the subject. 

Q. Mr. Burd : Do you know if planes are being serviced over there? 

the president. I couldn't say whether they are or not, but we do 
have a military mission. One of their jobs is instructing in air as well as 
the rest of the things. 

£). David Sentner, Hearst Newspapers: Mr. President, do you con- 
sider the Indonesian [Indochinese] situation critical at the present time? 

the president. Well, it's been critical for so long that it's difficult 
to just point out a period when it is more than normally critical. 

I think this is a fact : all of us have known, in every situation like you 
have there, that the heart and soul of the population finally becomes the 

226 



Dwight D. Eisenhower, IQ54 ^ 25 

biggest factor of success or failure. By that I mean if the Vietnamese 
want to be free, if they believe that through this kind of a war they will 
be free, then you will have probable success. 

Q. Anthony Leviero, New York Times: Mr. President 

the president [continuing]. If it goes the other way, you will prob- 
ably not have the success. So it is critical in the sense that we have had 
some evidence that there is a lack of enthusiasm we would like to have 
there. 

I am sorry, I just had a lapse : Indonesia 

Q. David Sentner, Hearst Newspapers: I meant Indochinese. 

the president. You did? Then I answered it ! [Laughter] 

I am glad we were both wrong. Some day I must tell you the story 
of the confusion with a cross-eyed man. [Laughter] 

Q. Anthony Leviero, New York Times: I am sorry for the interrup- 
tion, and that is what I meant to call attention to. 

the president. Thank you. 

Q. Charles von Fremd, CBS Television : I wonder, sir, if there is any- 
thing you can add at this time to the reported Air Force plan to build a 
world-wide chain of atom bomb storage bases that was discussed up on 
the Hill? 

the president. I have not seen that. 

Q. Mr. von Fremd : It was discussed up on the Hill yesterday in the 
Armed Services Committee, I believe. 

the president. I didn't know; it has escaped me; I haven't a word 
to say on it. 

Q. Kenneth Scheibel, Gannett News Service: Mr. President, the Gov- 
ernment must decide soon what price it will pay for surplus butter under 
the program which starts this spring. The dairy people have announced 
they want it kept where it is, but a lot of consumers think it is too high and 
it should be reduced. Do you know of any plan to reduce the price 
of butter? 

the president. I'll put it this way: I don't know that the decision 
has been reached as to where the price would be fixed for next year. 
Incidentally, I believe I have an engagement now with the dairy people 
coming in to see me, and I imagine they will talk about that. I do believe 
this : We can't keep butter priced out of the market and get it used. I 
just don't believe that, and something, I think, has to be done. 



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<][ 25 Public Papers of the Presidents 

Q. George Herman, CBS Radio: Mr. President, do you agree with 
Secretary Wilson that the United States is doing 90 percent of the atomic 
bomb rattling in the world? 

the president. Well, I don't think I ever make just ordinary gen- 
eralizations that sound like that. I do deplore any spread of hysterical 
fear in this world. I think that a mature, intelligent people ought to look 
at the problems and the threats that face them in the world, do the best 
they can, and have some confidence in the result. 

I do deplore, and I think that must have been what Secretary Wilson 
was trying to say — deploring, let us call it, just spreading of fear. 

Q. Nat Finney, Buffalo News: Mr. President, some of the reports 
from Berlin in the early phases of the conference there suggested, it seems 
to me, that there was some real progress being made on the discussion 
of your proposal for an atomic pool. Is there any light you can throw 
on that for us today? 

the president. No, not of a particularly detailed kind, at least. 

I do have, as you would know, I have my daily reports from Secretary 
Dulles. As I believe I noted last week, he is on the job, the man that 
enjoys my full confidence. He is doing the best he can to get those 
agreements of the kind that we believe to be logical and suited to the 
world situation today, fair to all. 

Experience has not given any great reason for assuming tremendous 
successes, but by the same token, I believe we must always keep trying; 
that is what we are doing. So far as the atomic side of it is concerned, 
it would always be possible, of course, that some little advance might be 
made there even in the absence of advances in the wider political prob- 
lems; but, as of now, I can't even suggest that that might come about. 

Q. Jack Bell, Associated Press: Mr. President, I would like to get 
back to the Bricker amendment for just a moment. I wonder if you 
could tell us whether you have any objections to Senator George's 
substitute proposal for the Bricker amendment? 

the president. Well, I'll tell you, at this moment I am not going to 
talk about the details of the thing because, as was suggested a few 
minutes ago, these things are complicated; they are very complicated, 
and they need long study. 

Every time something new appears upon the scene, my advisers and 
I get together. I get people from outside of Government, inside, and 

228 



Dwight D. Eisenhower, ig^4 <][ 25 

they begin to study it. But until meanings are clear and convictions 
can be formed, why, I wouldn't want to talk on details. 

Q. Mrs. May Craig, New England Papers: Mr. President, if I may 
go back to the sabre-rattling, our new look puts our dependence on 
air power and air power weapons, and it is said that they are deterrents 
of war. Now, if the enemy gets the idea that we will not use them, 
will they be a deterrent? 

the president. Well, Mrs. Craig, I will tell you: I spent some little 
time at war, and I don't think that big and bombastic talk is the thing 
that makes other people fear. I think that a calm going about of your 
own business, pursuing a steady course, that is the thing that makes him 
begin to tremble and wonder what you are going to do. 

Let me point this out: we fought a number of campaigns over in 
Europe, and I don't recall once issuing a precampaign statement that 
"we are big and strong and mighty and tough, and we are going to 
beat somebody's brains out." [Laughter] 

We went ahead with our job, our preparations, and when it was 
necessary, then the thing started. 

Our prayer is now that it will never be necessary to do these things, 
but we are just going about our business like Americans ought to — I hope. 

Q. Robert Spivack, New York Post : Mr. President, have you received 
any preliminary reports yet on the investigation of the high price of coffee, 
and if so, what they show? 

the president. No, I haven't, except what I expressed last week: 
that they believed from their preliminary investigation there was suffi- 
cient evidence to indicate the need for a much broader and deeper one. 

Q. Paul Leach, Chicago Daily News: Mr. President, there has been 
considerable criticism in the insurance industry of your reinsurance pro- 
posal in the health plan. Is there any indication that that will be modi- 
fied or changed or dropped? 

the president. Not at this moment; it hasn't been suggested to me. 
In other words, the Secretary of that Department has not come up with 
any change in plan. 

Q. Elmer Davis, ABC Television: Mr. President, is there any more 
information about the 2200? 

the president. On this 2200, when I found out some little time ago 
that you people had a very widespread interest in this thing, I said, "Well, 
let's take a good look." 

229 



t$ 25 Public Papers of the Presidents 

Here was something that never occurred to me there was going to be 
this kind of intense interest. We have had several groups since then 
studying just exactly what we can do, how far we can break these things 
down, and what information can be put out. When they report to me, 
I will use some channel to get it to you. Just exactly what the answer 
is going to be, I don't know. 

Q. John Herling, Editors Syndicate : Mr. President, this is a question 
that ties in with the economic side and the human relations side of your 
program. On the economic side you referred in your message to Con- 
gress that this was not the time for raising the minimum wage; it was a 
matter of timing. Does this mean that you don't plan to recommend a 
raise in minimum wages while we are holding the present level of 
unemployment? 

the president. Well, I think my Economic Report speaks for itself, 
and if you take any one of these items out of context and begin to talk 
about it, you can make it mean anything. I really put in many hours 
of hard work with my advisers on that Report, and I would respectfully 
refer you to that Economic Report for what I really believe at this mo- 
ment about the minimum wage scale. 

Q. Mr. Herling : Sir, in listing the things that would have to be done 
in the summary of your Economic Report, the spread of unemployment 
insurance, and so on, were listed among other things, but minimum wage 
was not. That is why the question as to whether or not you plan to do 
something about it this session. 

the president. The Economic Report, I think, makes clear that 
there would be a very great question about the wisdom of such a move 
at this particular moment when you are going through, inescapably, a 
transition from a semiwar economy, or even war economy, and all its 
controls into a freer economy not supported by great munitions expendi- 
tures of all kinds. 

It becomes a question of timing, and I am not so certain that I could 
describe the exact conditions that would have to be prevailing before 
you would make this recommendation. But I am certain that everybody 
studying that report and helping to prepare it does believe that it is 
through the proper distribution of the profits deriving from our form of 
industry — the widespread distribution — that the prosperity of this coun- 
try comes about. They believe in getting that done just as far as it is 
possible. 

230 



Dwight D. Eisenhower, 1954 <| 25 

Q. Mr. Herling: On the human relations side, the Albert Beeson 
nomination, which is being held up in Congress today, there seems to be 
a growing doubt in the Senate Labor Committee about how completely 
Mr. Beeson has severed his relations with his company and the pension 
plan connected with it. Senator Smith said late last night the White 
House wants fast action on the nomination one way or the other. Do 
you have any further or alternative plans in this connection? 

the president. I have no plans at all of any kind in this connection. 
I had my people search for an individual, I had both the Department 
and the Labor Departments in this particular thing. We searched and 
we found a man; we talked to him; we thought he was a good man. 
We think he is a good man. We put him before the Senate, and it 
is up to them. 

Q. Ray Scherer, National Broadcasting Company: Mr. President, 
several top Republicans have suggested that there is something unethical, 
almost un-American, about using this word "recession" in connection 
with the present business conditions. What could you say about that? 

the president. I hadn't seen those words, at least stated in that way. 
I think it is a free country; you can use words as you see fit, and attach 
to them such meanings almost as you see fit. 

I think we are going through a readjustment that we have had to 
after every time we have been in one of these emergencies of any kind 
in our country. You have to go as intelligently as you can, always 
remembering that the prosperity of this country lies in the prosperity 
of its masses, not just of the few corporations or anything else like that. 
That is the policy we are trying to apply. 

I suppose we have receded from something, because not everything 
is at its peak today, so you have to use the word as you see fit. 

I had not heard that particular exhortation. 

Q. Marvin Arrowsmith, Associated Press: Mr. President, to go back 
to the first question of the conference, you said you hadn't received a 
detailed report, a report on this case of the Soviet agent who is missing 
in Tokyo. Can you say whether he is in American custody? 

the president. No, I can't say anything, because it just happens to 
be one of those things that I have had no report of any kind. I assume 
that when there is really important information to impart, it will be 
brought to me. Normally it would, certainly. 

231 



<J 25 Public Papers of the Presidents 

Q. Harry Frantz, United Press, South American Service: Mr. Presi- 
dent, the question may be premature, and I won't press it if you are 
not prepared, but I just wondered if you are yet ready to give any general 
indication of your thought and plans with regard to the Tenth Inter- 
American Conference at Caracas on March 1st? There has even been 
some speculation that you thought of attending the opening, for example. 

the president. It has been discussed often between my principal 
advisers in those departments and myself, but there has been no feeling 
so far that we saw a practicable way for me to get down there at the 
moment. 

Q. Fletcher Knebel, Cowles Publications: Mr. President, after about 
a year of these press conferences, what do you think of them? Do you 
like them or not? [Laughter] 

the president. You are getting a little personal around here, aren't 
you? Well, I'll tell you: I think I told you people the first time we ever 
had a press conference that over a very considerable period of time in 
which I have been thrown into more or less intimate contact with the 
press — and that goes back to '41 — I feel that there has been between us 
existing a very fine relationship, in war and in peace. 

I have no particular objection even to the so-called needling questions. 
I think I recognize most of them. [Laughter] And I have got some 
very good friends. I will tell you frankly that one of the difficulties of 
the particular job I am on is that lots of good friends I have got among 
the newspaper people I can't pursue as freely as I could at one time, 
because it isn't understood you are just meeting a friend; you are meeting 
a newspaperman, and that becomes something else again. 

I don't mean to say that I like to give away the time that sometimes 
these conferences call for, particularly if they come at a very busy period. 
But all in all, I think I like them; that would be my answer. 

Q. George Herman, CBS Radio: Mr. President, last week at our 
conference you expressed interest in a plan for honorable discharges 
for people in Government employ. Could you tell us if you have 
inaugurated any study on that subject? 

the president. I asked about it, and I meant to ask about it this 
morning, to see whether we had gotten any place at all, but I just 
overlooked it. 

Q. Mr. Herman: You have asked somebody to look into it? 

232 



Dwight D. Eisenhower, 1954 <J 25 

the president. Oh, yes; I have asked. 

Q. Robert Clark, International News Service: Former President 
Socarras of Cuba was arrested a few weeks ago and accused of trying 
to smuggle arms out of the United States. We have a Latin-American 
client who would like to know if his arrest means the United States 
would not under any circumstances permit the security of another Ameri- 
can Republic to be threatened by illegal activities of political exiles? 

Q. (Several voices) : We don't understand the question. 

the president. Well, the question is, in general, this: that there was 
apparently some action taken to prevent suspected export of illegal arms, 
and the question was, then, did this act mean that the United States 
would always act in the same pattern in the case of any South American 
country. 

Obviously, here is a question that has so many implications you wouldn't 
even attempt an off-the-cuff, shooting-from-the-hip answer. 

Actually there was no detailed report made to me on the primary inci- 
dent and, therefore, I could not certainly reason from there to a policy 
until I knew all of the facts. I couldn't possibly answer the question at 
the moment. 

Q. Edward Milne, Providence Journal-Bulletin: Mr. President, I have 
my usual poor notes on this, on your answer to the question about the 
2200. I have you promising to channel something to us, but I don't 
understand whether you are going to channel the breakdown to us or 
whether you are simply going to let us know the decision of your associates. 

the president. Well, it could be both — [laughter] — but finally I will 
tell you what we are going to do about it. Now, you just have to give me 
a little time. 

This is an extremely complicated thing. Remember, I insist on one 
thing: let us not run this Government so as we can throw extraordinary 
guilt by association or any other way on people that are innocent. At the 
same time, I am determined that I will not keep people around and give 
them the privilege of governmental employment if they are security risks. 
Now, that is all I am trying to do. 

It takes time to break it down, and you will get an answer when I can 
give it and as fully as I can give it, and I don't know how fully that will be. 

Q. Robert Spivack, New York Post: Mr. President, this is a personal 
question, too, but last week when you were telling us about the coffee 

233 



<!H 25 Public Papers of the Presidents 

situation you said that you were intensely interested, I believe, in it your- 
self. Can you tell us how you take your coffee, and why? [Laughter] 

the president. Well, I'll tell you, you asked one that is a bit too 
personal for me. I happen to be a rather stubborn individual when I 
think I am being taken in any way or for any reason. I act in my own 
life in accordance with my convictions; but one reason I am so intensely 
interested, I have been one of the great coffee drinkers of the United States 
all my life — most soldiers are, as you know — so I am very interested in 
getting this coffee back to a price where I think it is reasonable. 

Q. Charles von Fremd, CBS Television : Mr. President, I find myself in 
a quandary regarding Mr. Knebel's question, and I say this with no inten- 
tion, sir, of being insulting. I wonder, however, if for the sake of the 
record it might be included that among your friends and the people you 
would like to get to know better among the newspapermen, if included 
among them could also be radio and television? [Laughter] 

the president. A strange thing about it, some of my best friends 
have been those people. 

Merriman Smith, United Press: Thank you, Mr. President. 

note: President Eisenhower's twenty- 10:59 o'clock on Wednesday morning, 
sixth news conference was held in the February 3, 1954. In attendance: 155. 
Executive Office Building from 10:35 to 

26 d Letter to Walter Reuther, President, United 
Automobile Workers, CIO, Concerning Economic 
Growth and Stability. February 3, 1954 

[ Released February 3, 1954. Dated February 1, 1954 ] 

Dear Mr. Reuther: 

I have now had an opportunity to read very carefully your letter of 
January thirteenth reviewing current economic conditions and renewing 
your proposal for a national conference on employment. 

To protect and promote economic stability, we have taken and will 
continue to take bold steps. The Administration has now outlined a 
program which, taken in its entirety, is designed to sustain a high level of 
production and employment throughout our economy. I am well aware 
of those areas presently experiencing certain economic hardships during 

234 



Dwight D. Eisenhower, IQ54 <j[ 26 

this transitional period. From the point of view of Federal action, I 
believe that the most important attack on these situations is from the 
standpoint of fostering the over-all health and vitality of our economy. It 
is with that principle in mind that the economic program of this Admin- 
istration has been formulated. 

Consultation with respect to the various parts of the Administration's 
program has, of course, been widespread. Continuing steps have been 
and are constantly being taken to re-examine the policies of the Federal 
Government affecting economic growth and stability. Special inquiries 
have been made and are being made into the problems of agriculture, 
housing, foreign economic policy, taxation, and the relations between 
Federal, State and local governments. I am gratified to know that you 
and other members of your group have discussed various aspects of eco- 
nomic growth and stability with the Council of Economic Advisers and 
with others in the Executive Branch. I hope that such consultations 
will continue on the wide range of problems that face us. At the present 
time, I believe this is the most fruitful method of pooling the ideas and 
experience of all segments of our population. 

While we must recognize and seek to deal with particular instances of 
economic hardship as they arise, it is essential to the achievement of greater 
national economic strength to maintain a steady, unshakable attitude of 
public confidence in the capacity of the American economy for continued 
growth. All of our citizens in positions of leadership have the responsi- 
bility of placing in the proper perspective transitional periods such as we 
are presently passing through. 

It is my deep conviction that we can make the transition, now under- 
way, from a wartime to a peacetime economy without serious interruption 
in our growth as a nation or in the improvement of the living standards 
of our people. Government policy is now geared to decreasing the diffi- 
culties incident to this transition and to strengthening the weapons 
necessary for this task. 

The Economic Report of the President, which was transmitted to 
the Congress on January twenty-eighth, sets forth and defines an affirma- 
tive and constructive overall approach to the problem of creating condi- 
tions favorable to sustained economic growth. We shall continue to 
pursue this objective with unrelenting determination. 
Sincerely, 

Dwight D. Eisenhower 

235 



<J 27 Public Papers of the Presidents 

27 ^ Veto of Bill Authorizing Commemorative 
Coinage for the Tercentennial Celebration of the 
City of Northampton, Massachusetts. 
February 3, 1954 

To the United States Senate: 

I am returning herewith, without my approval, S. 987, "To authorize 
the coinage of 50-cent pieces in commemoration of the tercentennial 
celebration of the founding of the city of Northampton, Massachusetts." 

The proposed legislation would authorize the coinage of one million 
silver 50-cent pieces in commemoration of the tercentennial celebration 
of the founding of the city of Northampton, Massachusetts. 

The principal objection to commemorative coins is that they detract 
from the fundamental function of the coinage as a medium of exchange. 
Multiplicity of designs on United States coins would tend to create con- 
fusion among the public, and to facilitate counterfeiting. The Congress 
recognized the necessity for limiting the designs of coins by section 3510 
of the Revised Statutes which provides that: ". . . no change in the 
design or die of any coin shall be made oftener than once in twenty-five 
years from and including the year of the first adoption of the design, 
model, die, or hub for the same coin: ..." 

I am further advised by the Treasury Department that in the past in 
many instances the public interest in these special coins has been so 
short-lived that their sales for the purposes intended have lagged with 
the result that large quantities have remained unsold and have been 
returned to the mints for melting. 

I fully recognize the importance to the country of the event which this 
coin would commemorate. I recognize, too, that the authorization of 
one or two or three of such issues of coins would not do major harm. 
However, experience has demonstrated that the authorization of even a 
single commemorative issue brings forth a flood of other authorizations 
to commemorate events or anniversaries of local or national importance. 
In the administration of President Hoover, these authorizations multi- 
plied to the point where he felt compelled to exercise his veto. The same 
pattern recurred in the administrations of Presidents Roosevelt and 
Truman. In view of this historical pattern, which by now has become 

236 



Dwight D. Eisenhower, IQ54 {fl 28 

so clear, I think that it is both wiser and fairer to make known my views 
on this subject at the outset. I therefore regretfully withhold my approval 
of S. 987. 

As has been suggested in the past, it seems to me wholly appropriate 
that anniversaries like this one, which the Congress deems it desirable 
to commemorate, should be recognized by bills authorizing the Treasury 
to provide suitable commemorative medals at cost. 

Dwight D. Eisenhower 

28 ^ Veto of Bill Authorizing Commemorative 
Coinage for the Tercentennial Celebration of the 
City of New York. February 3, 1954 

To the United States Senate: 

I am returning herewith, without my approval, S. 2474, "To authorize 
the coinage of 50-cent pieces to commemorate the tercentennial of the 
foundation of the city of New York." 

The proposed legislation would authorize the coinage of not to exceed 
five million silver 50-cent pieces in commemoration of the tercentennial 
of the founding of the city of New York. 

The principal objection to commemorative coins is that they detract 
from the fundamental function of the coinage as a medium of exchange. 
Multiplicity of designs on United States coins would tend to create con- 
fusion among the public, and to facilitate counterfeiting. The Congress 
recognized the necessity for limiting the designs of coins by section 3510 
of the Revised Statutes which provides that: ". . . no change in the 
design or die of any coin shall be made oftener than once in twenty-five 
years from and including the year of the first adoption of the design, 
model, die, or hub for the same coin: . . ." 

I am further advised by the Treasury Department that in the past in 
many instances the public interest in these special coins has been so short- 
lived that their sales for the purposes intended have lagged with the result 
that large quantities have remained unsold and have been returned to 
the mints for melting. 

I fully recognize the importance to the country of the event which this 
coin would commemorate. I recognize, too, that the authorization of one 

237 



<][ 28 Public Papers of the Presidents 

or two or three of such issues of coins would not do major harm. How- 
ever, experience has demonstrated that the authorization of even a single 
commemorative issue brings forth a flood of other authorizations to com- 
memorate events or anniversaries of local or national importance. In the 
administration of President Hoover, these authorizations multiplied to the 
point where he felt compelled to exercise his veto. The same pattern 
recurred in the administrations of Presidents Roosevelt and Truman. In 
view of this historical pattern, which by now has become so clear, I think 
that it is both wiser and fairer to make known my views on this subject 
at the outset. I therefore regretfully withhold my approval of S. 2474. 

As has been suggested in the past, it seems to me wholly appropriate 
that anniversaries like this one, which the Congress deems it desirable to 
commemorate, should be recognized by bills authorizing the Treasury to 
provide suitable commemorative medals at cost. 

Dwight D. Eisenhower 

29 fl Veto of Bill Authorizing Commemorative 
Coinage for the Sesquicentennial of the Louisiana 
Purchase. February 3, 1954 

To the House of Representatives: 

I am returning herewith, without my approval, H.R. 19 17, "To author- 
ize the coinage of 50-cent pieces to commemorate the sesquicentennial of 
the Louisiana Purchase." 

The proposed legislation would authorize the coinage of not to exceed 
two and one-half million silver 50-cent pieces in commemoration of the 
one hundred and fiftieth anniversary of the Louisiana Purchase. 

The principal objection to commemorative coins is that they detract 
from the fundamental function of the coinage as a medium of exchange. 
Multiplicity of designs on United States coins would tend to create con- 
fusion among the public, and to facilitate counterfeiting. The Congress 
recognized the necessity for limiting the designs of coins by section 3510 
of the Revised Statutes which provides that: ". . . no change in the 
design or die of any coin shall be made oftener than once in twenty-five 
years from and including the year of the first adoption of the design, model, 
die, or hub for the same coin : ..." 

238 



Dwight D. Eisenhower, IQ54 <R 30 

I am further advised by the Treasury Department that in the past 
in many instances the public interest in these special coins has been so 
short-lived that their sales for the purposes intended have lagged with 
the result that large quantities have remained unsold and have been 
returned to the mints for melting. 

I fully recognize the importance to the country of the event which 
this coin would commemorate. I recognize, too, that the authorization 
of one or two or three of such issues of coins would not do major harm. 
However, experience has demonstrated that the authorization of even 
a single commemorative issue brings forth a flood of other authorizations 
to commemorate events or anniversaries of local or national importance. 
In the administration of President Hoover, these authorizations multi- 
plied to the point where he felt compelled to exercise his veto. The same 
pattern recurred in the administrations of Presidents Roosevelt and Tru- 
man. In view of this historical pattern, which by now has become so 
clear, I think that it is both wiser and fairer to make known my views 
on this subject at the outset. I therefore regretfully withhold my 
approval of H.R. 19 17. 

As has been suggested in the past, it seems to me wholly appropriate 
that anniversaries like this one, which the Congress deems it desirable 
to commemorate, should be recognized by bills authorizing the Treasury 
to provide suitable commemorative medals at cost. 

Dwight D. Eisenhower 



30 ^ Letter to Frederic L. Vorbeck, Executive 
Chairman, United Catholic Organizations for the 
Freeing of Cardinal Mindszenty . 
February 4, 1954 

[ Released February 4, 1954. Dated February 1, 1954 ] 

Dear Mr. Vorbeck: 

I have your telegram of January twenty-third on behalf of the United 
Catholic Organizations for the Freeing of Cardinal Mindszenty. We 
in the free world have not forgotten that this is the fifth anniversary of 

239 



<I 30 Public Papers of the Presidents 

Cardinal Mindszenty's trial and imprisonment by the Communist 
authorities in Hungary. 

The unjust nature of the proceedings against Cardinal Mindszenty is, 
of course, well known to the American people. They regarded the 
attack upon him as a blow against religious freedom in Hungary and 
an unprincipled attempt to destroy spiritual and moral influences in 
that country. 

The Communist assault upon religious liberty and leadership in Hun- 
gary has failed, however, to turn the Hungarian people from their faith 
in God. The plight of Cardinal Mindszenty and of other churchmen 
who have suffered at the hands of the Communists has not been for- 
gotten. Their situation continues deeply to concern the people of Hun- 
gary and to evoke the sympathy of the free world. Despite the constraints 
of person and silence imposed on Cardinal Mindszenty and other church 
leaders by their persecutors, the spirit of these men has defied confinement 
by the totalitarian State. It has become, indeed, a symbol of faith and 
freedom for our times. 

Sincerely, 

Dwight D. Eisenhower 

3 1 *I Remarks at the Lincoln Day Box Supper. 
February 5, 1954 

Mr. Vice President, Members of the Cabinet, and Members of the 
Senate and of the House of Representatives, guests from all over this 
country, and their ladies and wives, and my very dear — all of you — 
Republican friends: 

In first attempting to acknowledge my very deep appreciation of the 
cordiality of your welcome, might I say, first that I have had a great 
inspiration over the past year in working with the representatives, legis- 
lative and executive, that you people have sent here to Washington. It 
has been a great privilege to work with individuals who are dedicated 
to the good of America, and place America above all personal or other 
gain. 

It is a great privilege to address each of you, the people who throughout 
this land believe as we do, who support us with your hearts, with your 

240 



Dwight D. Eisenhower, ig$4 <| 31 

voices, with everything that you have, to make certain that America is 
going to consistently grow stronger and better — spiritually, intellectually, 
economically, militarily. 

It was only a bit more than four score and ten years ago that a very 
great man said, "Four score and seven years ago our fathers brought 
forth upon this continent a new nation, conceived in liberty, and dedi- 
cated to the proposition that all men are created equal." 

Now, as he ended that great speech, a classic not only in the English 
language but in philosophical thought, Abraham Lincoln said that "gov- 
ernment by the people and for the people and of the people shall not 
perish from the earth." 

That was his philosophy. He uttered those words in a time of crisis. 
He dedicated his whole being to that one thought, that government by 
the people and for and of the people should not perish. He endured 
every indignity. We think of him today as a great leader. Yet he 
offered to hold McClellan's horse if McClellan would win a victory. 
There was nothing, no sacrifice he would not make to say we will preserve 
this nation as it has existed for four score and seven years. 

Now, in his time, the threat was a physical one — physical disunion of 
this great United States. But, my friends, he was only voicing a thought, 
he was only crystallizing a threat that has been with every type of free 
government since free government was first conceived. Always there is 
the struggle between domination by the few, and government of them- 
selves by the many. And he was determined it should not perish. 

And in every age and every time, there have been people so dedicated. 
And it is for that reason that free government exists today. And we are 
no different from those who have gone before us. We in our time must 
make certain that the genius of the Constitution and of our government 
shall not perish, that it shall belong to the young and to those who come 
after us in the same general form that it has been received by us. 

Now, in doing this, Abraham Lincoln said something else of a very 
profound character. "The legitimate function of government," he said, 
"is to do for the individuals what they cannot do for themselves, or cannot 
so well do for themselves." In this we find the expression of his great 
heart, his determination that government should be interested in people, 
in that person's disasters, in their privileges, in their rights. Everything 
that went to enrich their life or to damage that life was a legitimate con- 

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<][ 3 1 Public Papers of the Presidents 

cern of government, and when necessary, government would directly 
intervene. 

So that here we have, really, the compound, the overall philosophy of 
Lincoln: in all those things which deal with people, be liberal, be human. 
In all those things which deal with the people's money or their economy, or 
their form of government, be conservative — and don't be afraid to use the 
word. 

And so today, Republicans come forward with programs in which there 
are such words as "balanced budgets," and "cutting expenditures," and 
all the kind of thing that means this economy must be conservative, it must 
be solvent. 

But they also come forward and say we are concerned with every Ameri- 
can's health, with a decent house for him, we are concerned that he will 
have a chance for health, and his children for education. We are going 
to see that he has power available to him. We are going to see that every- 
thing takes place that will enrich his life and let him as an individual, 
hard-working American citizen, have full opportunity to do for his chil- 
dren and his family what any decent American should want to do. 

And so, my friends — by the way, you know, I wasn't supposed to make 
a speech, I was supposed to get up and greet you and sit down. 
[Applause] Now I am puzzled, I don't know whether you meant it 
would be a good idea to sit down or not. [Laughter] But let me bring 
this thought to you. This is really what I want to say: 

What a glorious challenge we have, what a privilege to live in this 
time. We know these threats to our system from abroad. We know 
those things that we have seen happening from within that have alarmed 
us. 

Let us be courageous. Let us lift our chins, our heads, and square our 
shoulders, and walk right square into it like Lincoln would have walked 
into it. 

Let us not be afraid to be humble, as he was humble when it was neces- 
sary. But let us — when it comes down to the basic purpose of the Re- 
publican Party: to preserve this Nation as it has existed, and to make 
government serve the needs of all our people, no matter in what way that 
needs to be done — let us be just as courageous as Lincoln was courageous 
as he met the problems of 4 years of dreadful civil war, with brother 
against brother, with state against state. 

If we meet it in that way, it seems to me we will meet it almost with 

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Dwight D. Eisenhower, ig^4 <| 32 

delight — with happiness that it has been given to us, in our time, to serve 
our country. 

Those men who fought on the battlefields of Gettysburg served their 
country, whichever side they were on. They believed in something. They 
did it to the utmost of their ability. 

If we would do it in that way, we don't have to listen to the prophets 
of gloom who say that we are going to go into this or that kind of a 
stumble or fumble or fall. The United States doesn't need to fall. 

The reason I believe in the Republican Party is because I believe 
it is the best political instrument available in this country to serve the 
United States in this kind of objective: for making certain that every 
individual American, whatever his station, will recognize that he has 
the opportunity of a free citizen, to make for himself what he can, and 
he will have a sympathetic partner — a big-brother partner, in the Federal 
Government; and that this Nation will persist in the kind of nation 
that was designed by our forefathers and in which it is now our great 
privilege to live. 

Now, my friends, you have done me a great honor by asking me here, 
allowing me to address these few thoughts to you. I wonder whether 
before we break up this party, you would like me to go over and bring 
my Mamie to greet you? 

note: The President spoke at the Uline Arena in Washington at 10:00 p.m. 

32 ^ Remarks Broadcast as Part of the American 
Legion "Back to God" Program. 
February 7, 1954 

AS A FORMER SOLDIER, I am delighted that our veterans are 
sponsoring a movement to increase our awareness of God in our daily 
lives. 

In battle, they learned a great truth — that there are no atheists in 
the foxholes. They know that in time of test and trial, we instinctively 
turn to God for new courage and peace of mind. 

All the history of America bears witness to this truth. 



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^ 32 Public Papers of the Presidents 

Out of faith in God, and through faith in themselves as His children, 
our forefathers designed and built this Republic. 

We remember from school days that, aboard a tiny ship of destiny 
called the Mayflower, self-government on our continent was first con- 
ceived by the Pilgrim Fathers. Their immortal compact began with 
the words, "In the name of God, Amen." 

We remember the picture of the Father of our Country, on his knees 
at Valley Forge seeking divine guidance in the cold gloom of a bitter 
winter. Thus Washington gained strength to lead to independence a 
nation dedicated to the belief that each of us is divinely endowed with 
indestructible rights. 

We remember, too, that three-fourths of a century later, on the battle- 
torn field of Gettysburg, and in the silence of many a wartime night, 
Abraham Lincoln recognized that only under God could this Nation 
win a new birth of freedom. 

And we remember that, only a decade ago, aboard the transport 
Dorchester, four chaplains of four faiths together willingly sacrificed their 
lives so that four others might live. 

In the three centuries that separate the Pilgrims of the Mayflower from 
the chaplains of the Dorchester, America's freedom, her courage, her 
strength, and her progress have had their foundation in faith. 

Today as then, there is need for positive acts of renewed recognition 
that faith is our surest strength, our greatest resource. 

This "Back to God" movement is such a positive act. 

As we take part in it, I hope that we shall prize this thought : 

Whatever our individual church, whatever our personal creed, our 
common faith in God is a common bond among us. In our fundamental 
faith, we are all one. Together we thank the Power that has made and 
preserved us a nation. By the millions, we speak prayers, we sing 
hymns — and no matter what their words may be, their spirit is the 
same — "In God is our trust." 

note: The President's remarks were p.m. as part of an American Legion pro- 
broadcast from the White House at 2 : 30 gram originating in New York City. 



244 



Dwight D. Eisenhower, ig54 <J 33 

33 *l The President's News Conference of 
February 10, 1954. 

the president. Good morning. One or two little items that may be 
of some interest : 

First, I hope you will allow me to welcome here a group of press people, 
press representatives, from the NATO countries. I assume that among 
them are people I have met many times before during my travels about 
Europe; anyway, I am glad you are here. 

I saw some rumors that the Government was intending to increase the 
interest rates on these Rural Electrification Administration loans. That is 
not true. 

I told you last December that there would soon be two divisions return- 
ing from Korea, if there were no great change in the situation. We ex- 
pect that very soon the 45th Division will start back, and a little later on 
the 40th; two National Guard Divisions — the 45th largely from the Okla- 
homa area, and some other units in it; and the 40th from California. I 
think the first one will be here in the middle of April, and the next one 
about the middle of June. 

It gives me an opportunity again to pay tribute to these National Guard 
units who keep themselves organized, their staffs and commanders trained 
in time of peace, and ready to operate in an emergency. It is part of 
our reserve element and, of course, very necessary. 

As you know, under the law there would normally come about soon a 
half-cent reduction in the Federal tax on gasoline. You also know in the 
statements already made that the administration hopes to keep that half- 
cent tax in order to push the good roads program throughout the United 
States. In the past, not all of this money has been put out on road con- 
struction in matching funds with the States. We hope to do it with all 
of it, and if we are successful, it will increase the Federal participation, I 
think, by some $225 million on a matching basis with the States. 

There is a Cougar Dam on the McKenzie River. There is a little 
statement that has been written about it, a very short one, and you will 
find it outside when you go out. It was merely a statement because it 
more or less exemplifies the thing we have been talking about quite a 
while, participation by local communities, municipalities, States, and so 



51986—60 10 



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<][ 33 Public Papers of the Presidents 

on, with the Federal Government in these great developments when such 
participation is feasible and possible. 

Now, that covers the few little statements I had, so we will start with 
questions. 

Q. Merriman Smith, United Press: Mr. President, the Democrats on 
Capitol Hill say that bipartisan support of certain portions of your program 
have been endangered by certain statements which have been made by 
members of the administration, statements ranging from the fact that the 
Democrats were soft toward subversives in the Government, to labels of 
political sadism. The Democrats have asked or suggested that you stop 
the statements; and we wondered if you could discuss the situation in gen- 
eral terms for us. 

the president. Well, I think, first of all, it is quite apparent that 
I am not very much of a partisan. The times are too serious, I think, to 
indulge in partisanship to the extreme, and I quite cheerfully admit that 
there must be Democratic support for the enactment of certain parts of 
the program. I believe Senator Knowland has often described himself 
as a majority leader without a majority in the Senate, so it is obvious that 
if these things are to become law there will have to be some support from 
the Democratic side. 

This one thing, I believe, I can say without appearing to be pontifical or 
particularly "stuffed shirt" about it: we have, and I have, tried to des- 
perately draw up a program that seems to me to be good for all Americans, 
which includes Democrats. I don't expect any Democrat to support any 
program because he happens to be a friend of mine — and I have many 
friends among them, as some of you would know. I have tried to put out 
a program that is good for the United States, and it is on that basis that I 
appeal for help. 

I know of no way in which the Chief Executive could stop this kind 
of thing except among the members of his own executive family, and I 
must say again that in this region, I have my own doubts that any great 
partisanship displayed by members of the executive department is really 
appropriate in this day and time. 

Now, there have been from the beginning of parties intemperate state- 
ments. They have been hurled back and forth. We seem to survive 
them and they seem to roll off the backs of political people, after the first 
flurry is over. I am often amazed when I read some of the statements 
that were made about Washington even before there were political parties. 

246 



Dwight D. Eisenhower, IQ54 ^ 33 

If you will look up and read what was said of him in his second adminis- 
tration, where they called him a tyrant, a betrayer of the people, a seeker 
after a gilded throne on which he wanted to establish a royal dynasty, and 
so on, these things have been going on a long time. 

I don't believe in bitter partisanship. I never believe that all wisdom 
is confined to one of the great parties; and I certainly have never, in 
general terms, criticized the other party, that is, to include its great 
membership. 

I believe there are good Americans in both parties, and I believe that 
the great mass of both parties is fundamentally and naturally sound. 

Q. Anthony Leviero, New York Times : Mr. President, isn't it preach- 
ing a kind of class warfare for Republican leaders to suggest that all 
Democrats, whether they are private citizens or officials, whether they 
are Senators or office holders, suggest that they are tinged with treason 
or that they are all security risks, without distinction? That is what 
has been going on. 

the president. You say that is what's been going on? I have seen 
no such statement; but if any such statement is made, I would consider 
it not only completely untrue, but very unwise — I mean even from a 
political partisan standpoint. Who would be so foolish as to call all of 
another great group treasonous to the United States of America? After 
all, they fought for America. 

Q. William Flythe, Hearst Newspapers: Mr. President, may I ask 
you about Indochina, sir, if you would care to say anything? 

the president. As I told you last week — I believe I told you last 
week, didn't that subject come up? I said we had increased the technical 
side of the training units you send out there. I forget the technical 
name for them — the training and administrative units that turn over 
the equipment, and so on — MAAGs, we call them. We have increased 
that. Now, recently, some of our equipment shipped to Indochina has 
involved airplanes, and they just didn't have the people to take care of 
them. So we increased that particular body by some airplane mechanics, 
who are to be returned from there no later than June 1 5th. 

Q. Mr. Flythe: Mr. President, I wanted to ask you, if I might, if 
these people could be considered in any way combatant troops? 

the president. No, they are not only maintenance troops, but I 
see no opportunity of them even getting touched by combat. 

Q. Roscoe Drummond, New York Herald Tribune: Mr. President, 

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CJ 33 Public Papers of the Presidents 

would you say it would be accurate for us to construe your answer to 
Mr. Merriman Smith about partisanship as meaning that you would 
counsel officials of the executive branch of the Government not to engage 
in extreme partisanship? 

the president. That is correct. 

Q. Alan Emory, Watertown Times: Sir, following up Mr. Leviero's 
question about specific comments from Republicans about the Demo- 
crats, I wondered if you would care to comment on these specific 
statements: one, by a Republican Senator, "that the label 'Democrat' 
was stitched with the idiocy of a Truman, rotted by the deceit of an 
Acheson, corrupted by the red slime of a White" ; and second, by another 
Republican Senator, that "the Republicans, when they took over, had 
found heaps of evidence of treason in the previous administration, and 
that the Democrats had tampered with the security of the United States." 

the president. Well, I will not comment on anybody's statement 
as such. I will not engage in personalities, and I think I have stated 
my position quite clearly as to what I think. I believe this: I believe 
that the ordinary American is capable of deciding what is temperate 
and just in fact, and what is just indulging in language for no good 
purpose that I can see. 

Q. Ethel Payne, Defender Publications: Mr. President, last Friday 
evening at the Lincoln Day box supper at the Arena, the Howard Uni- 
versity choir, which was scheduled to sing, was barred from the hall by 
District police. 

THE PRESIDENT. Who? 

Q. Miss Payne : The Howard University choir, even though they had 
their instructions, and had followed out those instructions. Consequently, 
they were forced to return to the campus without appearing on the pro- 
gram; but, in the meantime, two other singing groups, the Duke and 
Emory University Glee Clubs were admitted without incident. I wonder 
if you had been informed of that, and if you had looked into it. 

the president. I not only had not been informed of it — [confers 
with Mr. Hagerty] — I am just told, for the first time that I have heard 
about this, I am told by Mr. Hagerty that the bus driver was instructed 
to go around to the door by which I entered, and he refused to go around 
to that place. I hope there is no connection between those two facts. 
[Laughter] But anyway, that is just what I have been informed. 

248 



Dwight D. Eisenhower, 1954 ^ 33 

I would say this: if that choir was barred by the reason that you seem 
to fear, of anything about race or of color or anything of that kind, 
I will be the first to apologize to them. I just don't believe that could 
have happened. 

Q. Pat Munroe, Albuquerque Journal : Mr. President, further on the 
question of bipartisanship, Senator Anderson, perhaps the best friend of 
your farm program in Congress, is up for reelection, and his probable 
opponent will be a rather conservative Republican, Governor Mechem. 
They are saying there that you will probably stay out of the State entirely 
in the course of the campaign. I think we need a refresher on your 
plans for helping individuals — helping the Republican ticket in general, 
this November. 

the president. I have nothing to say on it except to repeat what I 
said a long time ago. I believe it was before one of our conferences: 
I am not going into any State and I am not going to participate in local 
contests. I think that as President I have really no right to do so. 

Q. Robert Richards, The Copley Press: Anent that partisan fight, 
would you say, one, that it is possible to frighten the country into a 
depression 

the president. I don't think I heard you start the question. 

Q. Mr. Richards: I say, would you say, one, it is possible to frighten 
the country into a depression; and, two, that efforts to frighten it were 
of political motivation? 

the president. I think it would be possible to mislead and, to a 
certain extent, frighten the country; not into a major depression, I doubt 
that. But I do believe you could have a recession brought about by 
such statements. On the other hand, I have in the past few months 
noticed statements that were attributed to at least people of more than 
one party in this respect, and I believe I will comment on that no more 
than I have. I don't want to violate my own ideas of fairness. 

Q. William Dickinson, Philadelphia Bulletin: Sir, would you permit 
direct quotation of your answer to Mr. Smith's question, the first one of 
the conference? 

the president. I wouldn't without taking a look at it. I don't recall 
the question and I don't recall my answer. But I just believe that the 
procedures of these conferences have to be observed rather closely or they 
will become something other than what they are. I hope you don't want 

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CJ 33 Public Papers of the Presidents 

me to come in here and begin to think of my grammar and rhetoric and 
all the rest of it in answering your question, so I would want to take a 
look. 

Q. Marvin Arrowsmith, Associated Press: Mr. President, to go back 
for a moment to that question on Indochina, there seems to be some 
uneasiness in Congress, as voiced by Senator Stennis for one, that send- 
ing these technicians to Indochina will lead eventually to our involve- 
ment in a hot war there. Would you comment on that? 

the president. I would just say this : no one could be more bitterly 
opposed to ever getting the United States involved in a hot war in that 
region than I am; consequently, every move that I authorize is calcu- 
lated, so far as humans can do it, to make certain that that does not 
happen. 

Q. Hazel Markel, Mutual Broadcasting System : Mr. President, there 
is a report that there has been rather heavy mail at the White House 
concerning the appointment of a woman to the White House staff. I 
would like to ask if the mail has been heavy on that score, and if there 
is consideration being given to such an appointment. 

the president. Well, if there is, I haven't seen it. Now, I don't 
want to answer your question with just a flat "no" for this reason: as 
you know, the mail all comes to a great place and it is sorted and segre- 
gated and I get my portion of it. I have seen none of it; but I would 
say and repeat again: I look for brains and ability where I can find it, 
and if I can find it among the women, I would certainly like to see one 
of them around here, in one of those important positions. 

Q. Joseph Slevin, New York Journal of Commerce : Mr. President, I 
would like to get back to your highway program announcement at the 
beginning of the session. You said you hoped to increase, as I under- 
stood it, Federal participation by $225 million. 

the president. Well, only in this way: there had been certain of 
the funds withheld apparently, maybe because the States didn't match 
them. I am not quite sure of all the facts, but we do hope to step up 
this program from around $675 million to about $900 million. 
[Addresses Mr. Hagerty] Isn't that correct? 

Mr. Hagerty : That is correct. 

the president. That is correct, about $900 million. 

Q. Mr. Slevin : Is that in addition to the amount programed in your 
budget when it went to the Congress? 

250 



Dwight D. Eisenhower, 1954 ^ 33 

the president. The amounts are not programed, except as I spoke 
of the tax, the cent and a half excise tax, as opposed to two cents. 

Q. Mr. Slevin: Is this $225 million in addition? 

the president. The $225 million would be in addition to the one 
and a half cent yield. You would get a 2 percent yield, which would 
altogether run about 

Q. Mr. Slevin: I am afraid I didn't make myself quite clear. I 
meant would the $225 million of Federal expenditures be in addition to 
the amount the budget said the Federal Government would spend in 
the next fiscal year? 

the president. As a matter of fact, I have forgotten the item that 
the Federal budget itself said. I don't believe we gave a specific figure, 
exact figure, on that, because I thought it was dependent on the amount 
collected by the tax. I will look up the point and tell you about that. 

Q. Will Muller, Detroit News : Mr. President, Detroit, the day before 
yesterday, was declared a surplus labor area. Do you plan that your 
order channeling set-asides into surplus labor areas will apply to Detroit, 
and there will be some relief there in the automotive industry? 

the president. Well, so far as this system gives any relief at all, it 
goes to every section of the country without exception, provided that 
the conditions are met. They are, in my mind, very strict conditions. 
If they are met, why, they would go to Detroit as well as any place else, 
I suppose. 

Q. Edward Milne, Providence Journal-Bulletin: Mr. President, Chair- 
man Wiley of the Foreign Relations Committee urged quite strongly in the 
Senate on Monday that the whole question of a treaty powers amendment 
be referred either to a congressional committee or to a Presidential com- 
mission for study. Senator Knowland, however, is trying to push ahead 
with an amendment to be written, as he said, on the floor at this session. 
Which course do you favor? 

the president. Well, I have had my say, in general, on this whole 
business of amending the Constitution. As you know, I have no official 
role in the amending of our Constitution. When an amendment is ap- 
proved by two-thirds of each House, it goes to the States, and that is that. 

Now, as to the procedures that they follow down there, I will leave it 
to them. I am not going to participate in that. 

Q. Mr. Milne: Could I just pursue the question for a moment? Sev- 
eral weeks ago, when the Bricker amendment, as such, was the pending 

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<][ 33 Public Papers of the Presidents 

business before the Senate, you made it extremely plain that you were 
opposed to the Bricker amendment. The pending business, when the 
Senate returns to the amendment next week, will be the Knowland- 
Saltonstall-Millikin, and one other Senator's name was attached, Sen- 
ator Ferguson. I wonder, sir, whether or not you approve that amend- 
ment which has been spoken of, at least informally, as an administration 
amendment? 

the president. Well, as you know, my position was always that 
there was a certain — normally kept in section i — that no agreement, no 
treaty, can be in opposition, or if it is in opposition to the Constitution, 
have any effect. 

I have always thought that was the amendment that would reassure 
the American people, and nothing else was really necessary. I have exam- 
ined many, many versions, and where they don't seem to transcend that 
purpose, in substance, I have not objected. That is all. I have just ob- 
jected to those things that I believe would hamper the President and the 
State Department in carrying on the foreign relations of this country, or 
where there would be an upsetting of the balance of powers established 
by the Constitution. 

Q. Glenn Thompson, Cincinnati Enquirer: Back to the road 
money 

the president. To the what? 

Q. Mr. Thompson : To the road money. 

Q. Sarah McClendon, El Paso Times : Highway money. 

Q. Merriman Smith, United Press : Highway money. 

THE PRESIDENT. Oh, yes. 

Q. Glenn Thompson, Cincinnati Enquirer: Yesterday Congressman 
McGregor introduced a bill in the House which would increase the Fed- 
eral contribution to highway building not by $225 million but by $289 
million. He described his bill as introduced for the administration. I 
wondered if your statement of $225 million is an intentional change from 
that bill? 

the president. Well, the figure that they gave me this morning was 
250, and I was merely trying to be conservative. [Laughter] I don't 
know exactly what the amount is. 

Q. Mr. Thompson: Mr. President, may I ask what the administra- 
tion's position is — 225, 250, or 289? 

252 



Dwight D. Eisenhower, 1954 ^ 33 

the president. Well, as a matter of fact, I came in here to talk to 
you about a principle based on a J/ 2 -cent tax; I don't know exactly what 
the figure is, and I can't be expected to know. Now, I am going to look 
it up. 

Q. James B. Reston, New York Times: Sir, in one of these meetings 
I believe you referred to your responsibilities as head of the Republican 
Party. I wonder if you would discuss with us how far those responsi- 
bilities cover the activities of the Republican National Committee? 

the president. Well, by organization they don't control it at all. 
What the President's responsibility as head of the party requires is that 
he devise a program that is in general conformity with the platform of 
his party, and that he do his best to get it enacted into law. I think 
that would be the simplest way to state his major party responsibility. 

Now, all parties are organized for business purposes, as you know, in 
a very detailed way. They head up into the Chairman of the National 
Committee, and the Chairman of the National Committee is never 
appointed, as again you well know, without consulting the President as 
to whether such and such a man is acceptable to him in that position. 

But as far as actually directing the affairs of that body, he has no 
official position whatsoever. 

Q. Mr. Reston: I was thinking, sir, of your statement, for example, 
this morning, suggesting or counseling tolerance upon members of your 
administration. Would you expect the Chairman of the Republican 
National Committee to follow such advice? 

THE PRESIDENT. Yes, I WOuld. 

Q. Daniel Shorr, CBS Radio: Mr. President, should your remarks on 
Indochina be construed as meaning that you are determined not to 
become involved or, perhaps, more deeply involved in the war in Indo- 
china, regardless of how that war may go? 

the president. Well, I am not going to try to predict the drift of 
world events now and the course of world events over the next months. 
I say that I cannot conceive of a greater tragedy for America than to 
get heavily involved now in an all-out war in any of those regions, par- 
ticularly with large units. 

So what we are doing is supporting the Vietnamese and the French 
in their conduct of that war; because, as we see it, it is a case of 
independent and free nations operating against the encroachment of 
communism. 

51986—60 20 2 53 



(j[ 33 Public Papers of the Presidents 

Q. Mrs. May Craig, New England Papers: Mr. President, a member 
of the Senate Armed Services Committee says he fears we are inching 
our way into war in Indochina, and that the Senate Armed Services 
Committee was not informed of the sending of additional technicians. 
Could you tell me to what extent you feel that you are bound to inform 
the Senate Armed Services Committee of your movements? 

the president. Well, I have not heard of this statement you made, 
and I should like very much to see and talk to that individual before I 
speak further, because I make no charges. 

I do know this: we try in every significant event that takes place in 
our international relationships to inform the proper people in the Senate 
and House — leadership, chairmen, and so on — before we do it, so that 
they know what's going on. There is no attempt here to carry on the 
affairs of America in a darkened room. 

One thing we must never forget : in the touchiness of today, everything 
you do has certain risks. Even when we try to give some food to some 
starving people there was risk in it — we were warned that there would 
be the gravest consequences likely to follow from such a thing. 

Everything you do has its certain risks. Knowing that, we try to keep 
people informed; and if someone told you that, well, it doesn't agree 
with my understanding and, therefore, I would want to talk to that person. 

Q. Charles Bartlett, Chattanooga Times: Mr. President, leading Re- 
publicans down in Tennessee seem to have the idea that you have decided 
against reappointing Gordon Clapp as Chairman of TVA. I wonder 
if you could give us some direct insight into that? 

the president. Well, to start with, the answer to that is simple: with 
respect to the appointments of personnel, you never make a statement 
until the appointment is announced. You never make a statement 
about such things; so I am sorry, I can't comment on it. 

Q. Sarah McClendon, El Paso Times: I believe, sir, that you had 
some conversations with the Mexican Ambassador last week. I wonder 
if you discussed the Mexican labor question? And did he say that a 
unilateral agreement whereby the United States brings in Mexico would 
endanger our good relations with that country? 

the president. He just came to ask that certain friendly talks that 
were going on between us be resumed, and I agreed instantly. 

Q. Robert Spivack, New York Post: Mr. President, following up 
Mr. Reston's question, last Sunday night Leonard Hall said over a TV 

254 



Dwight D. Eisenhower, IQ54 ^ 33 

program that the Republican National Committee was underwriting 
Senator McCarthy's tour across the country, and that this constituted 
an endorsement, and that he considered the Senator an asset. This 
was after the Senator had described the two previous administrations as 
"twenty years of treason." Do you approve of underwriting the tour 
or agree with Mr. Hall? 

the president. I don't think my approval or disapproval here is 
needed, and I am not going to comment any further on that. Par- 
ticularly, I have said many, many times that I am not going to talk 
about anything where personalities are involved; I will not do it. 

Q. Clayton Knowles, New York Times: Mr. President, you asked 
for statehood for Hawaii, and it looks like you are going to get it. 
There is a bill out in the Senate; but there are also bills reported in 
both the Senate and House for statehood for Alaska. Do you think 
the time is ripe for Alaskan statehood, as well? 

the president. These things are now separated on the Hill where 
they are still under discussion. I think rather than start a debate in 
this body on the same questions, I will wait until they decide; then, if 
you want to ask me a question again, I will talk about it. 

Q. Ray Scherer, National Broadcasting Company: Mr. President, 
would you give us any inkling of any travel plans you might have in 
the near future? 

the president. What? 

Q. Mr. Scherer : Travel plans, plans to be out of the city. 

the president. I hope to spend next Saturday out of this town. 
[Laughter] I hope that I will get a chance to go shooting. 

As you know I went to Europe; I haven't been shooting for 3 years, 
and I want to see whether I can hit a quail, if that is possible. If I go, 
I shall go to Secretary Humphrey's farm down in Georgia. That is 
still hopefully in my plans. 

Q. Edward Milne, Providence Journal-Bulletin : Mr. President, I think 
there has been some oversight here, and nobody has raised the question 
about 2200 security risks. [Laughter] 

the president. You have raised it, and I will let you discuss it. 
[Laughter] 

Merriman Smith, United Press: Thank you, Mr. President. 

note : President Eisenhower's twenty- 11:01 o'clock on Wednesday morning, 
seventh news conference was held in the February 10, 1954. In attendance: 204. 
Executive Office Building from 10:30 to 

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<][ g4 Public Papers of the Presidents 

34 ^ Statement by the President on the 
Participation by Eugene, Oregon, in the Multiple 
Purpose Development of the McKenzie River. 
February io, 1954 

BY JOINING with the Federal government in the multiple purpose 
development of the McKenzie River, the City of Eugene, Oregon, is 
pioneering in the new concept of power development in the Pacific 
Northwest. 

I have had an opportunity to study the program which the Eugene 
Water and Electric Board and the Corps of Engineers have jointly devel- 
oped. Under the plan, the Federal government will undertake the con- 
struction of flood control works on the McKenzie and the City will under- 
write the cost of construction of power facilities and transmission lines. 

This program, when carried to a successful conclusion gives the local 
people a responsibility in the important development work. It is true 
partnership and conforms to the power policy of this Administration. 

Legislation has been introduced by Senator Cordon and Congressman 
Ellsworth to carry this policy into effect. 

note: The President referred to S. 2920 and H.R. 7815, introduced on February 9. 

35 ^ Letter to Governor Thornton, Chairman of 
the Governors' Conference 1954, Proposing a Visit 
to Korea by a Select Group of Governors. 
February 1 1, 1954 

[ Released February 1 i, 1954. Dated February 9, 1954 ] 
Dear Dan: 

Our country, as you know, has an important stake in the fortunes and 
destiny of the Republic of Korea. Since the cessation of hostilities there 
last July, we have continued to improve its military position and have! 
also assumed the task of helping to rebuild its war-torn economy. The 
results of these endeavors will profoundly affect our leadership and pres- 
tige in the Far East and indeed throughout the free world. 

256 



Dwight D. Eisenhower, IQ54 ^ 36 

I am persuaded that a short visit to Korea by a select group of State 
executives who are constantly in direct touch with the American people 
would be highly beneficial. Their personal evaluation of our progress 
would provide the public with the essential knowledge and broad under- 
standing to which it is entitled. 

Accordingly, I would be deeply appreciative if you, together with 
other members of the Executive Committee of the Governors 5 Confer- 
ence, could go to Korea on or about April 1 and, upon your return, give 
an appraisal of the situation there based on first-hand observation. Will 
you canvass your Committee and advise me which Governors wish to 
make the trip? 

With kind regard, 

Sincerely, 

Dwight D. Eisenhower 

note: On July 9, 1954, the White House After citing many examples of progress 

released the text of a report on Korea by under the program, the Governors sug- 

Governor Dan Thornton of Colorado, and gested that additional effort be directed 

by Governors John Fine of Pennsylvania toward (a) achieving still better coordi- 

and Allan Shivers of Texas who accom- nation of the U.S., U.N., and Korean 

panied him on his visit to Korea. programs, (b) encouraging Korea to 

The Governors reported that a good stimulate private enterprise and private 

job was being done in administering the foreign investment through monetary re- 

U.S. aid programs. "The American and forms, (c) considering further utilization 

Korean people can be assured that oper- of U.S. surplus agricultural commodities, 

ating overhead is being kept at a mini- and (d) encouraging Korea to take addi- 

mum and that a full dollar value is being tional measures toward economic and fi- 

extracted for every dollar spent. Measur- nancial stabilization to permit maximum 

able progress has been made toward re- effectiveness in use of aid funds, 

pairing the devastation wrought by the A supplemental report to the President 

Communist aggression. We believe that on Japan was attached to the release of 

this progress will quicken in the months the Korean report, 
ahead through the joint efforts of Ko- 
reans and Americans." 

36 ^ Statement by the President on the 
Appointment of Admiral Jerauld Wright as 
Supreme Allied Commander, Atlantic. 
February 17, 1954 

I FEEL that Admiral Wright is extremely well qualified to perform the 
duties of Supreme Allied Commander, Atlantic. Admiral Wright has 

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(Hi 36 Public Papers of the Presidents 

extensive background and naval command experience in positions of 
vital importance and he is an officer of outstanding character and ability. 
Admiral Wright has served as Deputy U.S. Representative to the Standing 
Group of the North Atlantic Treaty Organization and is thoroughly cog- 
nizant of the duties and responsibilities of SACLANT. I feel that 
Admiral Wright will uphold and carry forward the fine traditions and 
worthy objectives sought by all the NATO nations. I have every confi- 
dence that Admiral Wright can make an outstanding contribution to 
our common defense effort. 

37 •! Remarks to the White House Conference 
on Highway Safety. February 17, 1954 

Mr. Secretary^ ladies and gentlemen: 

A privilege accorded me is that of coming to this meeting in order to 
extend to each of you a cordial welcome on behalf of the Government 
of the United States. 

The purpose of your meeting is one that is essentially local or com- 
munity in character. But when any particular activity in the United 
States takes 38,000 American lives in one year, it becomes a national 
problem of the first importance. Consequently, this meeting was called, 
and you have accepted the invitation, in an understanding between us 
that it is not merely a local or community problem. It is a problem for 
all of us, from the highest echelon of Government to the lowest echelon : 
a problem for every citizen, no matter what his station or his duty. 

I was struck by a statistic that seemed to me shocking. In the last 50 
years, the automobile has killed more people in the United States than 
we have had fatalities in all our wars: on all the battlefields of all the 
wars of the United States since its founding 177 years ago. 

We have great organizations working effectively and supported by the 
Government, to seek ways and means of promoting peace in the world 
in order that these great tragedies may be prevented — or at least mini- 
mized in the future. But we live every day with this problem that costs 
us so many lives, and not only lives but grief and suffering in the families 
from which those victims came — to say nothing of the disablement that 
so many other citizens must bear all through their lives either through 
their own or someone else's carelessness. 

258 



Dwight D. Eisenhower, ig$4 <| 37 

It is one of those problems which by its nature has no easy solution. 
No one can come along and say that we must have more policemen or 
more traffic lights or just more roads. It is a problem that is many-sided, 
and therefore every citizen can contribute something to it if nothing else 
but his own sense of responsibility when he is driving his car or crossing 
the street or taking care of his children. But I must say that in each 
community I do believe that much would be done if the efforts of all 
of those to whom we give legal responsibility in this affair would have 
the organized support of all of us. If there were community groups 
established that could command the respect and the support of every 
single citizen of that city or that community, so that the traffic policeman, 
so that everyone else that has a responsibility in this regard, will know 
that public opinion is behind him. Because I have now arrived at the only 
point that I think it worthwhile to try to express to you, because in all 
the technicalities of this thing you know much more than I do. I do 
want to refer, though, for one moment to this one factor: public opinion. 

In a democracy, public opinion is everything. It is the force that 
brings about progress; it is the force that brings about enforcement of 
the laws; it is the force that keeps the United States in being, and it 
runs in all its parts. 

So, if we can mobilize a sufficient public opinion, this problem, like 
all of those to which free men fall heir can be solved. That public 
opinion is not a thing of passing moment, not a thing to be won to our 
side all in one day. It is earnest, long, dedicated leadership on the part 
of everybody who understands the problem, and then having once been 
formed, it takes the same kind of leadership to maintain and sustain it, 
so that this problem will not return to us in exaggerated form. And 
that fear, I believe, is a very real one. 

The same list of statistics that I saw said that in 1975 — I don't know 
why I should be bothered about that year, except I have grandchildren — 
there are going to be 80 million automobiles on our streets and roads and 
highways. 

Now, the Federal Government is going to do its part in helping to 
build more highways and many other facilities to take care of those cars. 
But 80 million cars on our highways! I wonder how people will get to 
highway conferences to consider the control of highway traffic. It is 
going to be a job. 

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CJ 37 Public Papers of the Presidents 

But that figure does mean this : we don't want to try to stop that many 
automobiles coming — I am sure Mr. Curtice doesn't, anyway — we want 
them. They mean progress for our country. They mean greater con- 
venience for a greater number of people, greater happiness, and greater 
standards of living. But we have got to learn to control the things 
that we must use ourselves, and not let them be a threat to our lives 
and to our loved ones. 

And so I say all of this comes back to the mobilization of public 
opinion. This kind of meeting does something in the mobilizing of 
that opinion. When you go back to your communities, each of you 
will have an opportunity that is probably as direct and immediate and 
personal a one as you could probably have in this whole Government 
of ours. So while I thank you for being here, for doing your part in 
this kind of job, in this kind of meeting, I also congratulate you on the 
opportunity that is opening up to each of you in your own communities. 

And now again, thank you for the privilege of coming here and 
meeting you, and saying that I think you are engaged in something — I 
know you are engaged in something that is not only to the welfare of 
every citizen of the United States, but I believe that they realize it. 

Thank you very much. 

note: The White House Conference on the President referred toward the end of 

Highway Safety was called by the Presi- his remarks, was Chairman of the group 

dent through a letter to the State Gov- representing business. Later he became 

ernors released December 14, 1953. Sec- Chairman of the President's Committee 

retary of Commerce Sinclair Weeks for Traffic Safety. 

served as General Chairman of the Con- The President spoke at the Depart- 

ference. Harlow H. Curtice, to whom mental Auditorium. 

38 ^ Special Message to the Congress 
Recommending Amendments to the Atomic 
Energy Act. February 17, 1954 

To the Congress of the United States: 

For the purpose of strengthening the defense and economy of the 
United States and of the free world, I recommend that the Congress 
approve a number of amendments to the Atomic Energy Act of 1946. 
These amendments would accomplish this purpose, with proper security 
safeguards, through the following means: 

260 



Dwight D. Eisenhower, ig^4 <fl 38 

First, widened cooperation with our allies in certain atomic energy 
matters; 

Second, improved procedures for the control and dissemination of 
atomic energy information; and, 

Third, encouragement of broadened participation in the development 
of peacetime uses of atomic energy in the United States. 

NUCLEAR PROGRESS 

In 1946, when the Atomic Energy Act was written, the world was 
on the threshold of the atomic era. A new and elemental source of 
tremendous energy had been unlocked by the United States the year 
before. To harness its power in peaceful and productive service was 
even then our hope and our goal, but its awesome destructiveness over- 
shadowed its potential for good. In the minds of most people this new 
energy was equated with the atomic bomb, and the bomb spelled the 
erasure of cities and the mass death of men, women, and children. 

Moreover, this Nation's monopoly of atomic weapons was of crucial 
importance in international relations. The common defense and world 
peace required that this monopoly be protected and prolonged by the 
most stringent security safeguards. 

In this atmosphere, the Atomic Energy Act was written. Well suited 
to conditions then existing, the Act in the main is still adequate to the 
Nation's needs. 

Since 1946, however, there has been great progress in nuclear science 
and technology. Generations of normal scientific development have been 
compressed into less than a decade. Each successive year has seen 
technological advances in atomic energy exceeding even progressive esti- 
mates. The anticipations of 1946, when government policy was 
established and the Atomic Energy Act was written, have been far 
outdistanced. 

One popular assumption of 1946 — that the United States could main- 
tain its monopoly in atomic weapons for an appreciable time — was 
quickly proved invalid. That monopoly disappeared in 1949, only three 
years after the Atomic Energy Act was enacted. But to counterbalance 
that debit on the atomic ledger there have been mighty increases in our 
assets. 

A wide variety of atomic weapons — considered in 1946 to be mere 

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1$ 38 Public Papers of the Presidents 

possibilities of a distant future — have today achieved conventional status 
in the arsenals of our armed forces. The thermonuclear weapon — non- 
existent eight years ago — today dwarfs in destructive power all atomic 
weapons. The practicability of constructing a submarine with atomic 
propulsion was questionable in 1946; three weeks ago the launching of 
the U.S.S. Nautilus made it certain that the use of atomic energy for 
ship propulsion will ultimately become widespread. In 1946, too, eco- 
nomic industrial power from atomic energy sources seemed very remote; 
today, it is clearly in sight — largely a matter of further research and 
development, and the establishment of conditions in which the spirit of 
enterprise can flourish. 

Obviously, such developments as these within so short a period should 
have had a profound influence on the Nation's atomic energy policy. 
But in a number of respects, our atomic energy law is still designed to 
fit the conditions of 1946. 

Many statutory restrictions, based on such actual facts of 1946 as the 
American monopoly of atomic weapons and limited application of atomic 
energy in civilian and military fields, are inconsistent with the nuclear 
realities of 1954. Furthermore, these restrictions impede the proper 
exploitation of nuclear energy for the benefit of the American people and 
of our friends throughout the free world. 

An objective assessment of these varied factors leads clearly to these 
conclusions : In respect to defense considerations, our atomic effectiveness 
will be increased if certain limited information on the use of atomic 
weapons can be imparted more readily to nations allied with us in com- 
mon defense. In respect to peaceful applications of atomic energy, these 
can be developed more rapidly and their benefits more widely realized 
through broadened cooperation with friendly nations and through greater 
participation by American industry. By enhancing our military effec- 
tiveness, we strengthen our efforts to deter aggression; by enlarging 
opportunities for peacetime development, we accelerate our own progress 
and strengthen the free world. 

Section 1 of the Atomic Energy Act of 1946 wisely recognizes the need 
for future revisions of the law. In its spirit and in consideration of matters 
of the utmost importance to the Nation's defense and welfare, I recom- 
mend that the Congress approve a number of amendments to the Atomic 
Energy Act. 

262 



Dwight D. Eisenhower, IQ54 ^ 38 

COOPERATION WITH OTHER NATIONS 

In this atomic era, the growth of international cooperation for the 
defense of the free world is the most heartening development on the world 
political scene. The United States is allied with many friends in measures 
to deter aggression and, where necessary, to defeat the aggressor. The 
agreements binding ourselves and our friends in common defense con- 
stitute a warning to any potential aggressor that his punishment will be 
swift and his defeat inevitable. These powerful influences for peace must 
be made as strong and convincing as possible. 

Most of our friends among the nations have had little opportunity to 
inform themselves on the employment of atomic weapons. Under present 
law, we cannot give them tactical information essential to their effective 
participation with us in combined military operations and planning, and 
to their own defense against atomic attack. 

Our own security will increase as our allies gain information concerning 
the use of and the defense against atomic weapons. Some of our allies, 
in fact, are now producing fissionable materials or weapons, supporting 
effective atomic energy research and developing peacetime uses for atomic 
power. But all of them should become better informed in the problems 
of atomic warfare and, therefore, better prepared to meet the contingency 
of such warfare. In order for the free world to be an effective defense 
unit, it must be geared to the atomic facts of this era. 

I urge, therefore, that authority be provided to exchange with nations 
participating in defensive arrangements with the United States such 
tactical information as is essential to the development of defense plans and 
to the training of personnel for atomic warfare. Amendments to the 
definition of "restricted data" recommended later in this message will 
also contribute to needed administrative flexibility in the exchange of 
information with such nations concerning the use of atomic weapons. 

To meet a specific defense need existing in 1951, the Congress approved 
a carefully limited procedure for the communication of information on 
the processing of atomic raw materials, reactor development, production 
of fissionable materials, and related research and development. These 
limitations should now be modified so that the authority to communicate 
information, adjusted to present conditions, may be better used to our 
national advantage. 

In the development of peaceful uses for atomic energy, additional 

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<][ 38 Public Papers of the Presidents 

amendments are required for effective United States cooperation with 
friendly nations. Such cooperation requires the exchange of certain 
"restricted data" on the industrial applications of atomic energy and also 
the release of fissionable materials in amounts adequate for industrial and 
research use. I therefore recommend that the Atomic Energy Act be 
amended to authorize such cooperation. Such amendments should pre- 
scribe that before the conclusion of any arrangements for the transfer 
of fissionable material to a foreign nation, assurances must be provided 
against its use by the recipient nation for military purposes. 

Sharing certain information with other nations involves risks that must 
be weighed, in each instance, against the net advantages to the United 
States. In each case, we must be guided by such considerations as: The 
sensitivity and importance of the data, the specific uses to which the infor- 
mation will be put, the security standards of the cooperating nation, its 
role in the common defense of the free world, and the contributions it 
has made and can make to the mutual security effort. Such considera- 
tions apply to the exchange or communication of information on general 
defense planning and the employment of conventional weapons as well 
as to the information that could be exchanged pursuant to these 
recommendations. 

These recommendations are apart from my proposal to seek a new 
basis for international cooperation in the field of atomic energy as out- 
lined in my address before the General Assembly of the United Nations 
last December. Consideration of additional legislation which may be 
needed to implement that proposal should await the development of areas 
of agreement as a result of our discussions with other nations. 

In a related area, present law prevents United States citizens or corpora- 
tions from engaging directly or indirectly in the production of fissionable 
material outside the United States, except upon determination by the 
President that the proposed activity will not adversely affect the common 
defense and security. Matters that have arisen under this provision have 
been ordinary business or commercial activities which nevertheless fall 
within the broad statutory prohibition because they might contribute in 
some degree, however minor, to foreign atomic energy programs. The 
President should be enabled to authorize the Atomic Energy Commission 
to make future determinations of this nature. This amendment is related 
also to the above amendment concerning the exchange of information with 
other countries, as arrangements for authorized exchanges of information 

264 



Dwight D. Eisenhower, ig54 ^ 38 

with friendly foreign governments may involve participation by American 
citizens or firms in work in foreign countries. The proposed amendment 
would permit the Atomic Energy Commission also to authorize such 
participation. 

All of these proposed amendments should make it clear that the au- 
thority granted must be exercised only in accordance with conditions 
prescribed by the President to protect the common defense and security. 

PROTECTION OF ATOMIC ENERGY INFORMATION 

A special category of "restricted data," so defined as to include virtually 
all atomic energy data of security significance, is now established by law. 
"Restricted data" are protected in the law by special espionage provi- 
sions, provisions relating to the control, dissemination and declassification 
of such data, and by requirements for personnel security clearances. 

Personnel Security. The provisions of the Act relating to security clear- 
ances of personnel need improvement in several respects. The Act does not 
recognize degrees of sensitivity of "restricted data." The same clearance 
requirements apply to any type of "restricted data," whether it be access 
by the unskilled construction laborer to "restricted data" of only marginal 
security significance, or access by a scientist to the heart of atomic weapons 
information. The Atomic Energy Commission lacks sufficient latitude 
under present law to determine the extent of personnel investigation 
needed for adequate security. Many costly background investigations 
required by present law are unnecessary. The Atomic Energy Commis- 
sion should be permitted to relate the scope of investigation required under 
the Act to the significance of the access to "restricted data" which will 
be permitted. 

This amendment is especially pertinent to the proposed broadening of 
private participation in the development of atomic power. While such 
private participants will require access to "restricted data" on reactor 
technology, full investigations of all their employees who will have such 
access are not warranted because much of the data involved will not 
have significant security importance. Moreover, such investigations 
would impede and discourage the desired participation and would be 
unnecessarily costly both to government and to industry. Where access 
to more sensitive "restricted data" is involved, the Commission must, 
of course, require full investigations. 

Another security clearance problem relates to personnel of Depart- 

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<][ 38 Public Papers of the Presidents 

ment of Defense agencies and to the personnel of contractors with those 
agencies. The Atomic Energy Commission may now disclose "restricted 
data" to such of these personnel as have security clearances from the 
Department of Defense. The "restricted data" so disclosed by the Com- 
mission are thereafter protected in accordance with Department of 
Defense security regulations. And yet, contractors of the Commission 
are precluded by law from granting the same personnel access to the 
same "restricted data" until they have had AEC clearances, based on 
investigations by the Federal Bureau of Investigation or the Civil Service 
Commission. 

As applications of atomic energy become increasingly widespread 
within the Armed Services, the necessity increases for communication of 
"restricted data" between AEC contractors and participants in related 
Department of Defense programs. The present fact that personnel 
engaged in military programs who have military clearances must be 
denied access to "restricted data" by AEC contractor personnel impedes 
cooperation between the Department of Defense and the Atomic Energy 
Commission in areas of mutual interest and causes unnecessary expense 
in time and money. I therefore recommend that the Atomic Energy 
Commission be enabled to authorize its contractors and licensees to 
afford access to "restricted data" to personnel engaged in Department 
of Defense programs who need such data in their work and who possess 
the proper military security clearances. 

The Definition of Restricted Data. ( i ) A large body of "restricted 
data" under present law relates primarily to military utilization of atomic 
weapons. The responsibility for the control of much of this weapons 
information logically should rest with the Department of Defense rather 
than with the Commission. Many administrative difficulties that are 
produced by a dual system of security would be eliminated by the removal 
of this weapons information from the "restricted data" category and its 
subsequent protection by the Department of Defense in the same manner 
and under the same safeguards as other military secrets. 

This method of handling weapons information is not possible under 
present law. "Restricted data" can be removed from the statutory "re- 
stricted data" category only by declassification, upon a determination 
by the Atomic Energy Commission that the publication of such data 
would not adversely affect the common defense and security. Declassi- 

266 



Dwight D. Eisenhower, 1954 ^ 38 

fication obviously is not the remedy. The remedy lies in reliance upon 
the standard security measures of the user, the Department of Defense. 
I recommend, therefore, that the statutory definition of "restricted data" 
be amended to exclude information concerning the utilization of atomic 
weapons, as distinguished from information on their theory, design and 
manufacture. 

(2) In addition to information which falls wholly within the utiliza- 
tion category, there is information which concerns primarily the utilization 
of weapons but which pertains also to their design and manufacture. In 
order to avoid difficulties in this marginal zone, I recommend legislation 
which also would authorize removal of such information from the "re- 
stricted data" category. This would be done only when the Commission 
and the Department of Defense jointly determine that it relates primarily 
to military utilization of atomic weapons and that it can be adequately 
safeguarded as classified defense information under the Espionage Act 
and other applicable law. 

(3) Consistent with these changes, I recommend that the Department 
of Defense join with the Atomic Energy Commission in any declassifica- 
tion of "restricted data" which relate primarily to military utilization of 
atomic weapons and which can be published without endangering the 
national security. Thus, the Department of Defense will have an appro- 
priate voice in the protection and declassification of such "restricted data" 
and the responsibilities of the Commission will be clarified with respect 
to all other "restricted data". 

DOMESTIC DEVELOPMENT OF ATOMIC ENERGY 

What was only a hope and a distant goal in 1946 — the beneficent use 
of atomic energy in human service — can soon be a reality. Before our 
scientists and engineers lie rich possibilities in the harnessing of atomic 
power. The Federal Government can pioneer in its development. But, 
in this undertaking, the enterprise, initiative and competitive spirit of 
individuals and groups within our free economy are needed to assure the 
greatest efficiency and progress at the least cost to the public. 

Industry's interest in this field is already evident. In collaboration with 
the Atomic Energy Commission, a number of private corporations are 
now conducting studies, largely at their own expense, of the various reactor 
types which might be developed to produce economic power. There are 

267 



<| 38 Public Papers of the Presidents 

indications that they would increase their efforts significantly if the way 
were open for private investment in such reactors. In amending the law 
to permit such investment, care must be taken to encourage the develop- 
ment of this new industry in a manner as nearly normal as possible, with 
careful regulation to protect the national security and the public health 
and safety. It is essential that this program so proceed that this new 
industry will develop self-reliance and self-sufficiency. 

The creation of opportunities for broadened industrial participation may 
permit the Government to reduce its own reactor research and develop- 
ment after private industrial activity is well established. For the present, 
in addition to contributing toward the advancement of power reactor 
technology, the Government will continue to speed progress in the related 
technology of military propulsion reactors. The present complementary 
efforts of industry and Government will therefore continue, and industry 
should be encouraged by the enactment of appropriate legislation to as- 
sume a substantially more significant role. To this end, I recommend 
amendments to the Atomic Energy Act which would : 

1 . Relax statutory restrictions against ownership or lease of fissionable 
material and of facilities capable of producing fissionable material. 

2. Permit private manufacture, ownership and operation of atomic 
reactors and related activities, subject to necessary safeguards and under 
licensing systems administered by the Atomic Energy Commission. 

3. Authorize the Commission to establish minimum safety and security 
regulations to govern the use and possession of fissionable material. 

4. Permit the Commission to supply licensees special materials and 
services needed in the initial stages of the new industry at prices estimated 
to compensate the Government adequately for the value of the materials 
and services and the expense to the Government in making them 
available. 

5. Liberalize the patent provisions of the Atomic Energy Act, prin- 
cipally by expanding the area in which private patents can be obtained 
to include the production as well as utilization of fissionable material, 
while continuing for a limited period the authority to require a patent 
owner to license others to use an invention essential to the peacetime 
applications of atomic energy. 

Until industrial participation in the utilization of atomic energy 
acquires a broader base, considerations of fairness require some mechanism 
to assure that the limited number of companies, which as government 

268 



Dwight D. Eisenhower, 1954 ^ 39 

contractors now have access to the program, cannot build a patent 
monopoly which would exclude others desiring to enter the field. I 
hope that participation in the development of atomic power will have 
broadened sufficiently in the next five years to remove the need for such 
provisions. 

In order to encourage the greatest possible progress in domestic appli- 
, cation of atomic energy, flexibility is necessary in licensing and regulatory 
provisions of the legislation. Until further experience with this new 
industry has been gained, it would be unwise to try to anticipate by law 
all of the many problems that are certain to arise. Just as the basic 
Atomic Energy Act recognized by its own terms that it was experimental 
in a number of respects, so these amendments will be subject to continuing 
future change and refinement. 



The destiny of all nations during the twentieth century will turn in 
large measure upon the nature and the pace of atomic energy develop- 
ment here and abroad. The revisions to the Atomic Energy Act herein 
recommended will help make it possible for American atomic energy 
development, public and private, to play a full and effective part in 
leading mankind into a new era of progress and peace. 

Dwight D. Eisenhower 

39 ^ The President's News Conference of 
February 17, 1954. 

the president. My apologies for being a little early; I am trying to 
compress my schedule today. I hope, the Lord willing, in about an hour 
to be on my way to southern California — an area, by the way, which I 
have never seen, and none of my family. We are anxious to do it. 

As usual, of course, there is a small staff going along, I understand a 
lot of the newspaper people have already departed, and a lot of bills, 
reports, to read and sign. 

There is one little item that I don't know whether it has been pub- 
lished, so I jotted it down: the Queen Mother is going to make a visit 
to America in November. She is going to participate, I believe, in an 
English Speaking Union ceremony in New York. She is going to par- 

269 



<J gg Public Papers of the Presidents 

ticipate in the Columbia Bicentennial because, you know — a little com- 
mercial for Columbia — their charter was originally granted by King 
George II. Then, she will come down to Washington, will spend from 
about November 4th to November 6th at the White House, and then, 
I believe, will be here in the city at the Embassy for a while longer. 

The coffee investigation is proceeding. One reason I bring up the 
subject, I was asked by someone in my office whether I thought this 
investigation would have any effect on the relationships between the 
United States and our people, with South American countries and 
peoples. I see no possibility, myself, that it can affect them. The Bra- 
zilians, as you know, are as much upset by this coffee rise as the rest of 
us. What the investigation is about is to see whether there are any xoad 
blocks thrown between the source of supply in Brazil and South America 
and other countries, and the consumers, by speculation and other proc- 
esses of that kind that account for part of this great price rise. That is 
what the investigation is about, not looking into the internal affairs of 
any other country. 

There is a report due this afternoon, and I believe it will be available 
to all of you, from the Presidential emergency board with respect to the 
dispute between the Railway Express Agency and the Brotherhood of 
Railway Clerks. That report I haven't seen, but it is to be made avail- 
able, isn't it? 

Mr. Hagerty: Four o'clock. 

THE PRESIDENT. Four o'clock. 

I think that is about all I have in the way of little announcements of 
my own, so we will start the questions. 

Q. Kenneth Scheibel, Gannett Newspapers : Mr. President, a number 
of the farm State Congressmen in both parties are complaining that the 
reduction in dairy prices was too severe and should have been done on 
a more gradual basis. They feel that the cutback will cause hardships 
in some areas and might stir up some resentment against the flexible 
program that you advocate. Is there any — would you tell us if there is 
any plan to reconsider that decision or are you going to stick with it? 

the president. As you know, I never use the word "never," but, 
as of now, I have no thought that it should be reconsidered. 

Each of these problems has to be considered on its own merits; you 
see, each year under this support program that has been under butter, 

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Dwight D. Eisenhower, 1954 fft 39 

each year there has been a new decision to be taken : "Will you again 
support at 90 percent or will you reduce?" 

Now, last year all the conditions were there that called for reduction 
in accordance with the law as it exists. I, myself, with the Secretary 
of Agriculture, decided that in view of the fact this came right along 
after the election, somewhere about the first of March, as I recall, and 
that it was a problem that had only started a little while before in No- 
vember, it was only fair to continue the 90 percent for another year and 
see what happened. We did warn them if this kind of thing continued, 
the 90 percent rigid price supports could not be maintained. All year 
long we have been working with dairy associations, leaders of dairy 
associations, who believe that they have devised for themselves a pro- 
gram which will eventually make them really independent of govern- 
mental support. It will require some governmental, I believe, insurance. 

So the whole thing is not as sudden as it looked. This had been talked 
about for a year, looking ahead to the time when we must get butter 
back to some kind of price where it will be used. 

Today we have butter moving directly from creameries to govern- 
mental storage. Well, we are trying to get butter back on the dinner 
table in some way or other, and we believe that is in the best interests, 
long-term interests, of the dairy people themselves, as well as other 
farmers, as well as the public. Now, that is the belief. 

Q. Daniel Schorr, CBS Radio: Are you satisfied with the results of 
and the reaction to your remarks on extreme partisanship? 

the president. Well, I have no particular profound comment to 
make on that question. 

I expressed to you people my views about extremism of any kind in 
this political world, and I didn't particularly offer advice to anyone. 
I said what I would do and what I thought was only the right and, let 
us say, the wisest thing to do in our daily political life in this country. 

Q. Alan S. Emory, Watertown Times: Sir, I wonder if I could get 
back to butter for a second. I would like to ask two questions on the 
subject : first, did Mr. Benson inform you in advance specifically that he 
was going to lower the supports all the way to 75 percent of parity; and, 
second, do you see any conflict between the 15 percent drop on dairy 
products and your farm, program proposal that there should be a gradual, 
probably 5 percent a year drop when the basic crops were changed to 
flexibility? 

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<J 3g Public Papers of the Presidents 

the president. In the first question you are asking me for a test of 
perfect memory, and I am not sure. We talked over this problem many, 
many times during the year, and whether or not we agreed it was going 
to be from 90 to 15 [75] in one particular day, I am not certain. But 
I did know what the prospects were; therefore, it had certainly my tacit 
approval before it was ever even thought of. 

With respect to the second, I explained that this particular matter 
in the agricultural field is not like the storable crops. After all, you 
freeze butter at zero temperatures, and in 1 8 months, I understand, it is 
going rancid and deteriorates. 

I have also announced as one of my principles — and I think all of 
you will recall it — that I do not believe it is justified in this day and 
time to produce American products by the toil of our hands and the 
sweat of our brows, and then have them spoil. We have got to do 
something about it. 

Now, if you can't do something with it right now, when you have 
got 270 million pounds of butter in your hands, you have got to make 
some move to get it moving into commercial lines and, possibly, to turn 
some of the dairy products themselves into other types of dairy products. 
So, since this has been going on for a year — it has been under discussion, 
and actually it was first proposed that we do this in March 1953 — there 
has been, as I say, at least long notice, even though the actual move itself 
did go from 90 to the lower extreme. 

Q. Nat S. Finney, Buffalo Evening News : You sent over your message 
on the amendments to the Atomic Energy Act today. I wonder if you 
had any comment as to how urgent you consider that the Congress act 
on those at this session? 

the president. Well, when you go to talking about degrees and such 
things, I think it is difficult to give an exact answer. 

I will recall to your minds, I think, something that I have talked 
about before. I was, after all, Commander in Chief; and I suffered, 
very seriously suffered, under an inability to talk to allies about weapons 
and kinds of tactics that would be applicable if ever another war broke 
out, because of the secrecy imposed by this act. So I have always 
believed, not just this minute but for years backward, that there should 
be certain reasonable modifications made. So I would say I would like 
to see them get at it, put it that way. 



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Dwight D. Eisenhower, ig54 ^ 39 

Q. L. G. Laycook, Nashville Tennessean: Mr. President, several 
members of Congress contend that the TVA will be crippled because 
the administration included no requests for funds for new power gen- 
erating facilities in the budget. Would you care to comment on that? 

the president. Well, I haven't a great deal to say about it that I 
haven't said before. You will remember this question was up last year 
and we went through it. There was a struggle between $90 million and 
$9 million. 

I know of no reason why the city of Memphis, if it wanted to, couldn't 
do something about this matter itself. 

But what does disturb me is this : a whole great region of our country 
saying that it is completely dependent upon the Federal Government 
and can't move in improving its lot, except with Federal Government 
intervention. 

Now, much as I believe in the partnership between Federal Govern- 
ment, local government, and State government in developing the resources 
of our country, making them available to all the people at the lowest 
possible price, I still think that when we relieve local communities, local 
populations, of all responsibility, all of the participation in the costs of 
these things, we are running a very dangerous course. 

Now, what we are doing with this one is taking a good long survey and 
a good long look at it. I don't know what the final answer will be, but 
we are not going, as I say, we are not going to destroy the TVA; that, you 
can be sure of. 

Q. Mr. Laycook: One more question, sir. Have you appointed a 
commission to make this study that you just spoke of? 

the president. I have not appointed a Presidential commission, no. 
There have been surveys going on through the Bureau of the Budget. 

Q. Richard Harkness, National Broadcasting Company: There were 
two economic developments yesterday, Mr. President. The Department 
of Commerce issued its new style census count of unemployment, which 
showed the figure was rising sharply from the previous estimate ; and then 
an economist of the Federal Reserve Board, Mr. Winfield Riefler, said 
that already the economic dip was sharper than you had anticipated in 
your economic message to Congress. Would you comment on that? 

the president. Well, in the first place, the new figures for the De- 
partment of Commerce — and I suppose you studied them to see what the 



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Cfl gg Public Papers of the Presidents 

difference is — don't necessarily show a sudden rise. They would show a 
sudden rise possibly if you had this same figure based on this same basis 
of sample-taking for the last several months. But this is the first one, and 
we don't know whether the difference comes about through difference in 
sampling or whether there is actually a sharper rise in January than we 
had anticipated. I personally think there is a little of both. 

I didn't see this other remark that you speak of with the Federal Reserve 
Board. 

Q. Mr. Harkness: That was the testimony before the Joint Economic 
Committee. 

the president. I would say this : for the last several weeks all of us 
have been alert to this day by day, trying to make certain that there is no 
move neglected on the part of the Government that could be helpful, to 
make sure that we don't have any real recession. And I will tell you 
this : so far as using the powers of the Government are concerned, why, 
we are using them gradually. Now, if this thing would develop so that 
it looks like we are going into anything major, I wouldn't hesitate one sec- 
ond to use every single thing that this Government can bring to bear to 
stop any such catastrophe in this country. 

I have said that often, and I say it again; but you also don't want to 
throw the Government wildly out into all sorts of actions, lashing around 
everywhere, until you know what you are doing. It is a very dangerous 
move, I should say. 

Q. John Herling, Editors Syndicate : Mr. President, there are current 
reports that you favor a larger grant of power to States in the handling of 
labor relations, and I wonder whether they are correct reports. 

the president. I have made no commitment, no talk of any kind, 
except what you have already seen in the amendments I sent, to the Taft- 
Hartley bill, to Congress. 

Q. Mr. Herling: Well, some pro-Eisenhower union men are asking the 
question whether or not you would favor such an extension of power to 
States in labor relations, even if it meant the States would enact legislation 
that would lead to what has been described as union-busting legislation. 

the president. Well, I have never believed in union-busting. You 
are propounding here a hypothetical question which I have never talked 
about, and I would be foolish to try any shooting-from-the-hip answer to 
that one, I will tell you. 



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Dwight D. Eisenhower, IQ54 1R 39 

Q. Robert L. Riggs, Louisville Courier- Journal : Sir, on your TVA 
answer, did I get the correct impression that you were advocating the city 
of Memphis building a steam-generating plant? 

the president. No, I didn't advocate anything; but, I said, what 
would stop them if they wanted to? 

What I did say is this : I am fearful when I see any great section of the 
United States saying that they cannot do a single thing in industrial expan- 
sion or any other kind of expansion unless the Federal Government moves 
in and does it for them ; that is just what frightens me. 

Q. Mr. Riggs: Your point was the city could build it if they wished? 

the president. I think so; I don't know any reason why they 
shouldn't. Someone tells me that there is an element in the contract 
down there that sort of estops the kind of action which would take place 
wherever you had free enterprise or greater freedom. I am not quite 
sure what that item is, but I was told that just in the last few days. 

Q. Sarah McClendon, El Paso Times: Mr. President, this unilateral 
Mexican labor program is being blocked in the House Rules Committee. 
Is that being done at your request, pending the outcome of the resump- 
tion of these negotiations in Mexico City on the bilateral labor program? 

the president. I assure you I didn't know it was blocked in the 
Rules Committee; I didn't know anything about it. 

Q. David P. Sentner, Hearst Newspapers : Mr. President, would you 
care to comment upon any expected results from the Big Four Confer- 
ence or any lessons from it? 

the president. Well, I suppose lessons are of all kinds, positive and 
negative, and so on. 

I don't think there is any comment to make. The Secretary of State 
is coming back soon. He is going to report immediately to bipartisan 
groups in both Senate and House, and to the appropriate committees 
in each case. He will report to me early next week, as soon as I come 
back; and I will possibly then, at whatever press conference follows 
that, have something to say about his evaluation. 

I have had nightly reports from the Secretary, and I think I am fairly 
well acquainted with his thinking; but it is only fair, I think, both to 
him and to me, before I comment publicly to wait and have a chat 
with him. 



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<J 39 Public Papers of the Presidents 

Q. Joseph R. Slevin, New York Journal of Commerce: Mr. Presi- 
dent, do you think the economic downturn has reached a point where 
consumers should get larger tax concessions than your program called 
for? 

the president. Well, I can't give you an affirmative answer to that 
one at this moment. 

As you know, the Economic Report states that that is a measure to 
bring in very quickly when you see this thing spread very definitely. 

I should think that March ought to be sort of the key month. March 
is a month when, I am told, employment begins normally to pick up 
and you have a definite upturn in the curve. Now, if that isn't true, 
I should say then we would have a very definite warning that would call 
for the institution of a number of measures; possibly this tax reduction 
would be one of the first considered, although I can't say for certain. 

Q. Jack L. Bell, Associated Press: Mr. President, Senator Carlson said 
earlier today that there would be a statement issued on the 2200. He 
didn't make it clear exactly where the statement would be issued. If 
there is such a statement, would you care to comment on it now in 
advance of issuance, and tell us something about it? 

the president. Well, no. [To Mr. Hagerty] Didn't you tell me 
that the Civil Service Commission, I think, is going to have a preliminary 
statement on this thing sometime — today, is it? 

Mr. Hagerty: Yes, 4:00 o'clock. 

the president. Four o'clock. But I think that their final answer 
that they will put out will take a little bit of time to compile, but they 
are going to have a statement to make on it sometime this afternoon. 

Q. Andrew F. Tully, Scripps-Howard : Mr. President, what has 
become of your plan for an international atomic energy pool? 

the president. As a matter of fact, it is not dead, and I wouldn't 
be at all surprised to see some further negotiation in a group jointly set 
up to do some private talking on it. I don't know yet what is going to 
happen, but it is still alive. 

Q. Mr. Tully: Did Mr. Dulles and Zaroubin get anywhere in their 
discussions? 

the president. I think I have said enough on that; thank you very 
much. 



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Dwight D. Eisenhower, ig54 ^ 39 

Q. Louis Lautier, National Negro Press Association: Is there any way 
to distinguish between aid to the anti-Communist forces in Indochina and 
support of colonialism? 

the president. Well, of course. You have asked the very question 
that is the crux of this whole thing at this moment. There is no colonialism 
in this battle at all. 

France has announced several times, and most emphatically last July, 
that they are fighting to give the three associated states their freedom, their 
liberty; and I believe it has been agreed they would live inside the French 
Union, but as free and independent states. 

Now, as I see it, the Vietnamese are fighting for their own independence, 
and I have no trouble at all making the distinction that you speak of. 

We are not trying to help anybody support and maintain colonialism. 

Q. Henry Pierre, Le Monde (Paris) : Mr. President, there have been 
some reports that General O'Daniel will be sent back to Indochina with 
increased responsibilities. Does it imply, in your opinion, some criticism 
about the way the Vietnamese troops have been trained up to now? 

the president. No. I think, first of all, to get a real answer to your 
question why there should be a change in the head of that mission out 
there — Trapnell, I believe, is there now — I believe you better go to the 
Defense Department; but it merely means there would be a man to 
relieve Trapnell in Indochina. 

Q. Helene C. Monberg, Colorado Newspapers: Mr. President, there 
is a report on the Hill that you would like your good friend Governor 
Thornton to run for the Senate; is that true? 

the president. Well, I have refused on several occasions to com- 
ment on the specific internal and local affairs of any State, particularly 
their political affairs. 

Now, as to a State where I hope to go and spend a pleasant summer, 
I know I am not going to say anything about it. [Laughter] 

Q. Mrs. May Craig, Maine Newspapers: Mr. President, Senator 
Bridges and Senator Symington are going to Italy to investigate the 
report that Communists are infiltrating into aircraft plants there, and 
they will also investigate similar reports. Do you think that it is appro- 
priate to impart atomic information and weapons to allies who may be 
temporarily in a political turmoil? 



51986—60 21 



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C[[ 3g Public Papers of the Presidents 

the president. Well, Mrs. Craig, there are as many kinds of atomic 
energy information as there are different types of people in this room. 
We are not talking about giving anybody information that will help an 
enemy. 

Now, that is the only thing I can say to that. 

(Speaker unidentified) : Thank you, Mr. President. 

note: President Eisenhower's twenty- 2:20 o'clock on Wednesday afternoon, 
eighth news conference was held in the February 17, 1954. In attendance: 178. 
Executive Office Building from 1:58 to 

40 ^ Message to Prime Minister Nehru 
Commending the Indian Custodial Forces in Korea. 
February 19, 1954 

Dear Mr. Prime Minister: 

Now that the mission of Indian troops is drawing to a close in Korea, 
I want to express to you my appreciation and that of my countrymen 
for the performance of the Indian Custodial Forces. 

No military unit in recent years has undertaken a more delicate and 
demanding peacetime mission than that faced by the Indian forces in 
Korea. The vast majority of prisoners placed in their charge had from 
months of imprisonment and uncertainty become highly nervous and 
volatile. The confidence inspired by the exemplary tact, fairness and 
firmness shown by the Indian officers and men led by their two able 
commanders, Lt. General Thimayya and Major General Thorat did 
much to alleviate the fears and doubts of these prisoners. The per- 
formance of these officers and their troops was fully in keeping with the 
high reputation of the Indian Army. They deserve the highest 
commendation. 

With best wishes, 

Sincerely, 

Dwight D. Eisenhower 



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Dwight D. Eisenhower, IQ54 ^ 41 

41 *§ Veto of Bill Relating to Claims of Certain 
Employees of the Bureau of Prisons. 
February 22, 1954 

To the House of Representatives: 

I return herewith without my approval H.R. 395, "To confer jurisdic- 
tion upon the United States Court of Claims with respect to claims against 
the United States of certain employees of the Bureau of Prisons, Depart- 
ment of Justice." 

This measure would confer jurisdiction upon the United States Court 
of Claims to adjudicate the claims of employees and former employees 
of the Federal Bureau of Prisons, notwithstanding the lapse of time or 
any provisions of law to the contrary. 

The claimants seek compensation for overtime performed on Saturdays 
during the period beginning in March 1931, and ending in May 1943. 
They allege that they were not granted compensatory time off on some 
other work day as required by the so-called Saturday half-holiday law of 
March 4, 1 93 1 . Even for the most recent of the claims the six-year statute 
of limitations expired several years ago. 

The claims in these cases relate to work performed at different times 
over a period of more than twenty years. The official time and attendance 
records which would be required to prove or disprove the issues of fact 
have been disposed of periodically in the regular manner. Without doubt, 
necessary witnesses have died or are otherwise beyond reach. This is the 
very kind of situation which proves the wisdom of a statute of limitation. 
Without it in such cases it is doubtful whether we can have efficient and 
orderly administration of the affairs of government. 

If I were to approve this enactment, I could not in good conscience 
refuse to approve other bills setting aside the statute of limitations on old 
claims for overtime or other compensation for either individuals or groups 
of Federal personnel who delayed in presenting their claims. 

Leaving aside these very important issues of principle and going to the 
legislative record of this bill, it would appear that the measure has been 
under consideration in one form or another since the first session of the 
80th Congress. Each successive review by the Department of Justice has 



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<][ 4 1 Public Papers of the Presidents 

indicated that within the then existing statutory framework, Bureau of 
Prisons employees were granted appropriate time off. 

In this connection, it must be remembered that the matter of authoriz- 
ing payment of overtime compensation to Federal employees has been of 
gradual development. For almost fifty years, between 1893 an d 1 94 2 > ex " 
cept where there was express authorization to the contrary, the statutes 
prohibited the payment of additional compensation for extra hours of 
service, and there was no law of general applicability establishing weekly 
hours of duty of Federal per annum employees. 

The outbreak of World War II brought a close to the haphazard ap- 
proaches to this problem. Under war-time laws and those enacted since, 
definite statutory limits were established to govern the work week, over- 
time compensation, and holiday pay. Without doubt, by present stand- 
ards, the working conditions of the Bureau of Prisons employees for a 
great part of the period in question would be considered onerous. But 
they were no more onerous than those applicable to many other groups 
of Federal employees. I believe it would be a mistake to single out the 
group covered by H.R. 395 for the purpose of dealing retroactively with 
an hours-of-work situation which existed during a long-past period that 
began almost twenty-three years ago. 

Furthermore, I do not see how this bill could work full justice. Turn- 
over in employment in the classes of employees covered by it was very 
high, and I have the gravest doubts that the intended benefits would reach 
more than the relatively few who would become aware of the existence 
of this act if I were to approve it. 

I am in favor of providing Federal employees with the fullest oppor- 
tunity to adjust grievances. I believe, however, that it is fair to confine 
them generally to the limitations of law and other reasonable conditions. 
This case, in my opinion, is especially an instance where the law and the 
principles of orderly administration should be permitted to prevail. 

For these reasons I return the bill without my approval. 

Dwight D. Eisenhower 



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Dwight D. Eisenhower, IQ54 <J 42 

42 ^ Veto of Bill for the Relief of Mrs. Anna 
Holder. February 23, 1954 

To the House of Representatives: 

I return herewith H.R. 3733, "For the relief of Mrs. Anna Holder." 

This measure, in directing the payment to Mrs. Anna Holder of the 
sum of $10,000, would provide a special legislative settlement of her 
claim that she is entitled to that amount from the Government as the 
beneficiary named in two $5,000 policies of National Service Life 
Insurance. 

These policies matured in May 1945. Mrs. Holder, the sole surviving 
designated beneficiary, thereupon claimed the proceeds. She established 
that the deceased serviceman, an orphan, had been reared from early 
childhood by her parents, and that she occupied a de facto relationship of 
sister for many years. The Veterans' Administration denied her claim, 
ruling that she did not come within the permitted classes of beneficiaries 
prescribed in the National Service Life Insurance Act of 1940, as amended. 
The correctness of the ruling of the Veterans' Administration under the 
applicable law is not disputed. 

The Congress imposed specific limitations on the classes of beneficiaries 
permitted to be named under National Service Life Insurance maturing 
before August 1, 1946. Similarly, the Congress did not vest in the Vet- 
erans' Administration authority to grant exceptions from the general rule. 

Therefore it seems to me irrelevant and unwise to accept as justification 
for this bill, the fact that Mrs. Holder could now qualify as a beneficiary 
under existing law, which was not made retroactive. 

On the other hand, I believe that it is relevant to take fully into account 
several other factors of great importance in connection with the National 
Service Life Insurance program as it existed up to 1946. The insurance 
was issued at peace-time rates which it was recognized would provide 
but a small fraction of the cost of the program if the United States 
should become involved in a war. Consequently, provision was made 
that all benefits payable because of deaths due to the extra hazard of 
military service would, in effect, be paid from appropriated funds. This 
was done by reimbursing the trust fund for such costs. Under these 
circumstances, it was considered desirable to restrict those eligible for 



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<][ 42 Public Papers of the Presidents 

benefits to the categories of persons to whose support the veteran might 
be obligated to contribute. 

Finally, I cannot overlook considerations of equity to all beneficiaries 
as contrasted with the individual case in which the deceased veteran 
named an ineligible person as the beneficiary of his insurance. I have 
expressed the view, on other occasions, that uniformity and equality of 
treatment to all who are similarly situated must be the steadfast rule if 
the Federal programs for veterans and their beneficiaries are to be oper- 
ated successfully. Otherwise, inequities are compounded, as is fully 
revealed by statistics reported by the Veterans' Administration. More 
than 3,200 claims of designated beneficiaries for the proceeds of National 
Service Life Insurance have been denied because they were not within 
the prescribed classes of beneficiaries. A great number of them involved 
relationships which appear to have been just as close and as real as that 
claimed by Mrs. Holder. 

In my judgment, this is not a case in which the circumstances are so 
unique or exceptional as to justify a waiver of the law. I, therefore, 
withhold my approval from the bill. 

Dwight D. Eisenhower 

43 ff Statement by the President on Proposed 
Improvements in the Federal Personnel Program. 
February 24, 1954 

I HAVE been long convinced that a program combining the best prac- 
tices of progressive private employers with the special demands of public 
service would greatly benefit our Federal career system and its employees, 
and would improve the efficiency of its administration. 

In keeping with this conviction, I recently designated a subcommittee 
of the Cabinet to carry on studies with other special groups to determine 
how best to adjust pay inequities and provide other necessary elements 
of a well-rounded personnel program. Many of the elements of such 
a program have since been recommended to me and approved by the 
Cabinet. As approved by me, these elements are: 

1. Reclassification, job evaluation and a new pay scale for the Postal 
Field Service as recommended by the Postmaster General. 

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Dwight D. Eisenhower, 1954 <j[ 43 

2. Readjustment of inequities in the Classification Act pay scale. 

3. A program of contributory Group Life Insurance, on a voluntary 
basis, for all Federal employees. 

4. A program of contributory Medical Care and Hospitalization Insur- 
ance open to all Federal employees on a voluntary basis. 

5. Unemployment insurance, according to recommendations made in 
my Budget Message. 

6. Improvement of governmental pension plans which will be based on 
recommendations of the Committee on Retirement Policy for Federal 
Personnel. 

7. Continuing study of the wage board pay system and the extension 
of that system to certain jobs now under the C.P.C. schedule of the Classi- 
fication Act. 

8. Repeal of the "Whitten Amendment" in order to remove certain 
restrictions on Federal appointments and promotions established during 
the Korean emergency. 

9. Additional improvements in Federal personnel administration, 
including: 

( a ) Longevity pay increases in grades above GS- 1 o ; 

(b) Increase in the number of positions in the three highest grades 
under the Classification Act; 

( c ) Revision of overtime pay and premium pay provisions ; 

(d) Development of a stronger incentive awards program; and 

(e) Substitution of a "Rule of Five" for the present "Rule of Three" 
in selecting eligibles from the Civil Service lists. 

Recommendations covering much of this program have already been 
sent to the Congress and are scheduled for early action. The contributory 
life insurance and medical care and hospitalization insurance programs 
will be presently submitted to the Congress for later consideration and 
analysis. 



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<| 44 Public Papers of the Presidents 

44 *§ Letter to Prime Minister Nehru of India 
Concerning U.S. Military Aid to Pakistan. 
February 25, 1954 

[ Released February 25, 1954. Dated February 24, 1954 ] 
Dear Mr. Prime Minister: 

I send you this personal message because I want you to know about 
my decision to extend military aid to Pakistan before it is public knowl- 
edge and also because I want you to know directly from me that this 
step does not in any way affect the friendship we feel for India. Quite 
the contrary. We will continually strive to strengthen the warm and 
enduring friendship between our two countries. 

Our two Governments have agreed that our desires for peace are in 
accord. It has also been understood that if our interpretation of existing 
circumstances and our belief in how to achieve our goals differ, it is the 
right and duty of sovereign nations to make their own decisions. Having 
studied long and carefully the problem of opposing possible aggression 
in the Middle East, I believe that consultation between Pakistan and 
Turkey about security problems will serve the interests not only of 
Pakistan and Turkey but also of the whole free world. Improvement 
in Pakistan's defensive capability will also serve these interests and it is 
for this reason that our aid will be given. This Government's views on 
this subject are elaborated in a public statement I will release, a copy 
of which Ambassador Allen will give you. 

What we are proposing to do, and what Pakistan is agreeing to, is not 
directed in any way against India. And I am confirming publicly that 
if our aid to any country, including Pakistan, is misused and directed 
against another in aggression I will undertake immediately, in accordance 
with my constitutional authority, appropriate action both within and 
without the UN to thwart such aggression. I believe that the Pakistan- 
Turkey collaboration agreement which is being discussed is sound evidence 
of the defensive purposes which both countries have in mind. 

I know that you and your Government are keenly aware of the need 
for economic progress as a prime requisite for stability and strength. 
This Government has extended assistance to India in recognition of 
this fact, and I am recommending to Congress a continuation of economic 

284 



Dwight D. Eisenhower, IQ54 ^ 45 

and technical aid for this reason. We also believe it in the interest of 
the free world that India have a strong military defense capability and 
have admired the effective way your Government has administered your 
military establishment. If your Government should conclude that cir- 
cumstances require military aid of a type contemplated by our mutual 
security legislation, please be assured that your request would receive 
my most sympathetic consideration. 

I regret that there has been such widespread and unfounded specula- 
tion on this subject. Now that the facts are known, I hope that the real 
import of our decision will be understood. 

With best wishes, 

Sincerely, 

Dwight D. Eisenhower 

45 ^ Statement by the President on Military Aid 
to Pakistan. February 25, 1954 

ON FEBRUARY 19th, Turkey and Pakistan announced their intention 
to study methods of achieving closer collaboration on various matters 
including means designed towards strengthening peace and security. This 
Government welcomed this move and called it a constructive step towards 
better ensuring the security of the whole area of the Middle East. The 
Government of Pakistan has now asked the United States to grant mili- 
tary assistance. 

I have said repeatedly that regional groupings to ensure security against 
aggression constitute the most effective means to assure survival and prog- 
ress. No nation can stand alone today. My report to the Congress on 
June 30, 1953, stated that we should strengthen efforts towards regional 
political, military and economic integration. I, therefore, under the au- 
thority granted by the Congress, am glad to comply with Pakistan's re- 
quest, subject to the negotiation of the required MDAP agreement. 

This Government has been gravely concerned over the weakness of 
defensive capabilities in the Middle East. It was for the purpose of help- 
ing to increase the defense potential in this area that Congress in its last 
session appropriated funds to be used to assist those nations in the area 
which desired such assistance, which would pledge their willingness to pro- 



51986—60 22 



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mote international peace and security within the framework of the United 
Nations, and which would take effective collective measures to prevent 
and remove threats to peace. 

Let me make it clear that we shall be guided by the stated purposes 
and requirements of the mutual security legislation. Those include spe- 
cifically the provision that equipment, materials or services provided will 
be used solely to maintain the recipient country's internal security and 
for its legitimate self defense, or to permit it to participate in the defense 
of the area of which it is a part. Any recipient country also must under- 
take that it will not engage in any act of aggression against any other 
nation. These undertakings afford adequate assurance to all nations, 
regardless of their political orientation and whatever their international 
policies may be, that the arms the United States provides for the defense 
of the free world will in no way threaten their own security. I can say 
that if our aid to any country, including Pakistan, is misused and directed 
against another in aggression I will undertake immediately, in accordance 
with my constitutional authority, appropriate action both within and 
without the UN to thwart such aggression. I would also consult with 
the Congress on further steps. 

The United States earnestly desires that there be increased stability and 
strength in the Middle East, as it has desired this same thing in other parts 
of the free world. It believes that the aspirations of the peoples in this 
area for maintaining and developing their way of life and for realizing the 
social advances close to their hearts will be best served by strength to 
deter aggression and to reduce the fear of aggression. The United States 
is prepared to help in this endeavor, if its help is wanted. 

46 ^ Statement by the President Marking the 
Opening of the Red Cross Drive. 
February 28, 1954 

My fellow Americans and Red Cross members: 

Americans believe in the Red Cross. 

I personally believe in it, first, because I know from my own experience 
the great good it accomplishes in war and peace; second, because I believe 



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Dwight D. Eisenhower, IQ54 Q 46 

in the fundamental principle of Red Gross — the principle of people 
helping people. 

Through the Red Cross, Americans have helped the men and women 
in our armed forces. In generation after generation, American service- 
men have turned to the Red Cross with their personal problems, their 
family emergencies, and the Red Cross has responded. It has responded 
quickly and generously. 

Through the Red Cross, the people of this Nation have constantly 
relieved the pain and suffering of fellow citizens trapped by natural 
disasters. The homeless and the hungry have been sheltered and fed. 
Victims of disaster, lacking the means to rebuild and refurnish their 
homes, have found in the Red Cross the assistance they needed. 

And because the American people have donated their blood as well 
as their money, the Red Cross during the last decade has given life itself 
to the wounded and the sick. The blood donated by the American 
people has saved not only the wounded on the battlefields of World 
War II and Korea, but the sick and injured in more than three thousand 
hospitals here at home. 

The Red Cross has provided, and with your help will continue to 
provide, vast quantities of blood products — products such as gamma 
globulin, which helps our children avoid the horrible paralysis caused 
by polio. 

So much for the material contributions of the Red Cross. But beyond 
all this — the Red Cross abundantly provides faith in the innate goodness 
of people, in their ability to work together for the Nation's good. It 
exemplifies the enormous power which kindness and generosity can exert 
to move men closer to the day when the rule of force will be banished 
from the world, and when the Golden Rule will guide the actions of 
mankind. 

Through your Red Cross you give special meaning to this faith in 
humanity. I am confident that this year, as in the past, the American 
people will join the Red Cross in its magnificent efforts to comfort our 
fellow men. 



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47 •! Message Recorded for the Observance of 
World Day of Prayer. March 2, 1 954 

My friends in many lands: 

It is profoundly moving to realize that the 1954 World Day of Prayer 
is to be observed, in appropriate services, by many millions of people 
around the globe. These services, beginning in New Zealand and the 
Tonga Islands, west of the international date line, follow the sun 
throughout the day, and end 24 hours later, in St. Lawrence Island in 
Alaska. 

Prayer seems to bring closer together in mutual understanding, the 
people who unite in its practice. 

At the very beginning of our own national life, at a time when the 
Constitutional Convention was plagued by dissension and on the point 
of breaking up, Benjamin Franklin suggested that all join him in a 
moment of prayer. After that silent moment, the delegates suddenly 
seemed to be united in their purposes, and there was born the great 
document by which we live. 

Throughout the history of this country, all the men and women we 
most revere as inspired leaders constantly sought Divine Guidance in the 
discharge of their public responsibilities. 

Today the innermost longing of mankind is for peace; peace for all 
nations, for all men, everywhere. 

The hosts of people who take part in this World Day of Prayer are 
seeking the help of the Almighty to find the way toward the goal of peace, 
toward the triumph of freedom and the unity of men. 

In this noble purpose all men of good will may devoutly join. 

note: The President's words were broad- Day of Prayer (March 5) was sponsored 

cast throughout the world by the Voice by the United Church Women of the 

of America, as recorded and as trans- National Council of Churches of Christ 

lated into some 37 languages. World in the United States. 

48 *I The President's News Conference of 
March 3, 1954. 

the president. Ladies and gentlemen, as you know, the Governor of 
Puerto Rico made a visit to the capital yesterday, to join with all of us 

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Dwight D. Eisenhower, ig$4 <I 48 

here in an expression of his sentiments of regret at the tragic events on 
Capitol Hill 2 days ago. 

I was, of course, pleased to welcome him for that purpose, because 
while we all knew what the sentiments of the mass of Puerto Rico were, it 
was, I thought, a very splendid gesture on his part to come up and state 
them, you might say, officially. 

We start out — I have got one statement that I want to make as my 
complete and full expression on one incident of recent weeks. 

[Reading] I want to make a few comments about the Peress case. 

The Department of the Army made serious errors in handling the 
Peress case and the Secretary of the Army so stated publicly, almost a 
month ago. The Army is correcting its procedures to avoid such mistakes 
in the future. I am completely confident that Secretary Stevens will be 
successful in this effort. 

Neither in this case, nor in any other, has any person in the executive 
branch been authorized to suggest that any subordinate, for any reason 
whatsoever, violate his convictions or principles or submit to any kind of 
personal humiliation when testifying before congressional committees or 
elsewhere. [Discontinues reading] 

For the benefit of those of you who are making statements, Mr. Hagerty 
has insisted on duplicating this, and you will probably get a copy of it. 

[Resumes reading] In a more general sense, I have certain observations 
to make. They are: 

1. We must be unceasingly vigilant in every phase of governmental 
activity to make certain that there is no subversive penetration. 

2. In opposing communism, we are defeating ourselves if either by 
design or through carelessness we use methods that do not conform to 
the American sense of justice and fair play. 

3. The conscience of America will clearly discern when we are exercis- 
ing proper vigilance without being unfair. That conscience is reflected 
in the body of the United States Congress. We can be certain that its 
members will respond to America's convictions and beliefs in this regard. 

Here I must repeat something that I have often stated before. The 
ultimate responsibility for the conduct of all parts of the executive branch 
of the Government rests with the President of the United States. That 
responsibility cannot be delegated to another branch of Government. It 
is, of course, likewise the responsibility of the President and his associates 

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<| 48 Public Papers of the Presidents 

to account for their stewardship of public affairs. All of us recognize the 
right of the people to know how we are meeting this responsibility and 
the congressional right to inquire and investigate into every phase of our 
public operations. 

Manifestly, in a government such as ours, successful service to 160 
million people demands a true spirit of cooperation among the several 
branches of Government, especially between the executive and the legis- 
lative branches. Real cooperation is possible only in an atmosphere of 
mutual respect. 

I spent many years in the Army, during the course of which I some- 
times appeared before committees of the Congress. Sometimes I was a 
direct witness; more often, in my early years, at least, I was merely a 
so-called technical assistant to the man testifying. 

In all that time, I never saw any individual of the Army fail to render 
due and complete respect to every member of Congress with whom duty 
brought him in contact. In all that time, I never saw any member of 
the Congress guilty of disrespect toward the public servants who were 
appearing before him. In the tradition of such mutual respect I grew 
up in the governmental service. It is that tradition that I intend that 
the executive branch will observe and apply as long as I hold my present 
office. 

Now, I have only a few additional comments. 

First, all of us know that our military services and their leaders have 
always been completely loyal and dedicated public servants, singularly 
free of suspicion of disloyalty. Their courage and their devotion have 
been proved in peace as well as on the battlefields of war. America is 
proud of them. I am certain that no one in any governmental position 
wants to have his own utterances interpreted as questioning the lasting 
debt that all of us as Americans owe to the officers and enlisted men and 
women of the armed services. In this tribute to the services, I mean to 
include General Zwicker, who was decorated for gallantry in the field. 

Second, except where the interests of the Nation demand otherwise, 
every governmental employee in the executive branch, whether civilian 
or in the Armed Forces, is expected to respond cheerfully and completely 
to the requests of the Congress and its several committees. In doing so 
it is, of course, assumed that they will be accorded the same respect and 
courtesy that I require that they show to the members of the legislative 



290 



Dwight D. Eisenhower, 1954 ^ 48 

body. Officials in the executive branch of the Government will have 
my unqualified support in insisting that employees in the executive branch 
who appear before any type of executive or congressional investigating 
body be treated fairly. 

Third, obviously, it is the responsibility of the Congress to see to it 
that its procedures are proper and fair. Of course, I expect the Re- 
publican membership of the Congress to assume the primary responsi- 
bility in this respect, since they are the majority party and, therefore, 
control the committees. I am glad to state that Senator Knowland has 
reported to me that effective steps are already being taken by the Repub- 
lican leadership to set up codes of fair procedure. 

Fourth, there are problems facing this Nation of vital importance. 
They are both foreign and domestic in character. They affect the indi- 
vidual and collective future of all of us. The views of myself and my 
associates on these matters have been outlined in the proposals for legis- 
lation we have submitted to the Congress. They deserve the undivided 
and incessant attention of the Congress, of the executive branch, of the 
public information media of our Nation, of our schools, and even of 
our churches. I regard it as unfortunate when we are diverted from 
these grave problems — of which one is viligance against any kind of 
internal subversion — through disregard of the standards of fair play rec- 
ognized by the American people. These incidents are all the more use- 
less and unfortunate in view of the basic dedication of every loyal Ameri- 
can to the preservation and advancement of America's safety, prosperity, 
and well-being. [Ends reading] 

And that is my last word on any subject even closely related to that 
particular matter. 

Q. Merriman Smith, United Press: Mr. President, this is not closely 
related, but Senator McCarthy yesterday questioned the wisdom of 
Secretary Dulles having removed from Mr. McLeod the authority over 
personnel problems in the State Department. I wonder if you could tell 
us your feeling on that. 

the president. Well, the assignment to duty of any administrative 
officer in any department of Government is the responsibility of the head 
of that department, and no one else's whatsoever. I hold the head of 
department responsible to me for proper operation of that department. 
He is, in turn, responsible for everything that goes on within it. 

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CJ[ 48 Public Papers of the Presidents 

Q. Donald Shannon, Salt Lake City Deseret News: I think this is 
quite far removed from anything you were talking about. The term of 
Interstate Commerce Commissioner James K. Knudson expired in De- 
cember. Why hasn't the renomination gone up, and will it eventually 
be sent to the Senate? 

the president. It has not been submitted to me yet. I haven't had 
anything on that brought to my desk. 

Q. Richard Harkness, National Broadcasting Company: Would you 
comment, sir, on suggestions that special labor camps be formed to 
contain alleged and suspected subversives in the Armed Forces? 

the president. Well, I don't believe I will comment on this at the 
moment. Renewed attention has been given to this whole problem 
within the Armed Forces, they are coming up with a plan, and I will 
be perfectly ready to comment on their whole plan after it is once sub- 
mitted. But I don't believe that I want to comment on a suggestion of 
that kind which I never before heard. 

Q. Mr. Harkness: Mr. President, if I may continue, sir. 

THE PRESIDENT. Yes. 

Q. Mr. Harkness: This is not part of the Army's plan, as I understand 
it. It is, to the contrary, a suggestion of Senator McCarthy. 

the president. Well, as I say, I don't care to comment on it at the 
moment because I don't know how it would work out. 

Q. Sarah McClendon, El Paso Times: Sir, totally aside from that, 
but somewhat related to what you said about humiliation before com- 
mittees and fair play — totally aside from the merits or demerits of Chief 
Justice Warren or his accuser — don't you think it smacks of totalitar- 
ianism for a witness before a congressional committee on a confirmation 
case to be harassed by the Justice Department and the Metropolitan 
Police and the Capitol Police when he is there to testify, in a free country? 

the president. Well, you are asking a question based on a premise 
that I do not know to be true. I know about this only what I have read 
in the papers, and that said that there was a man who was a fugitive 
from justice, and the legal authorities of our country were taking care 
of their own responsibilities. 

I should say this: if they did have responsibility and didn't discharge 
it, we would have cause to worry. I don't know anything about the 
merits of the case. 



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Dwight D. Eisenhower, ig$4 <J 48 

Q. Mrs. McGlendon: Sir, if I may continue, I believe later they de- 
cided that they didn't have enough to arrest the man there — of course, 
that would be a question of fact — but what I am getting at is arresting 
a man through efforts of the Department of Justice in the Halls of Con- 
gress when he comes before a congressional committee to say, as an 
American, he wants to testify. 

the president. I believe that that is something that will have to be 
tested by the good sense of the enforcement officers, and the decisions of 
courts. 

I haven't heard the particular circumstances that you describe. I 
just knew from the papers that a man, appearing to testify, was wanted 
somewhere else, and officers were called upon to do something about it. 

Q. Alice Dunnigan, Associated Negro Press: Mr. President, the ques- 
tion has been under discussion on Capitol Hill as to whether Labor 
Secretary Mitchell's letter sent to the chairman of the Senate Committee 
on Labor and Public Welfare last week endorsing the Ives equal employ- 
ment opportunity bill, with enforcement powers, expresses the position 
of the administration on this measure. Would you like to clarify your 
position on that? 

the president. I have made my position clear many dozens of times. 
I believe there are certain things that are not best handled by punitive 
or compulsory Federal law. 

Now, not only is Secretary Mitchell allowed in his own person to have 
views different from me on certain particular details of governmental 
activity, but any other Cabinet officer is so allowed and so authorized, 
and I don't consider it any matter of disloyalty to me. 

He expressed his own personal views, and I respect his personal views, 
but I don't want around me a bunch of yes-men. 

Q. McClellan Smith, Radio Television Daily: Mr. President, Chair- 
man Reed of the House Ways and Means Committee has said that a 
10 percent ceiling should be the maximum on excise taxes. If such a 
bill goes through, will you veto it? 

the president. I know of no question that is more impossible of 
answer than what an Executive will do about a future bill with respect 
to vetoes, because no one knows what is all going to be in that bill; and 
sometimes, I suppose, you have to swallow a deal of castor oil along with 
the sweet coating. 



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C][ 48 Public Papers of the Presidents 

Now, as far as that measure is concerned, Secretary Humphrey issued 
a statement last evening that represents views that he and I had pre- 
viously discussed; and if you want to know the details of the views, I 
suggest you take a look at that statement and discuss it down at the 
Treasury Department. 

Q. Edward Folliard, Washington Post: Mr. President, how does the 
truce in Korea affect the Red Cross, that is, in Red Cross services to the 
Armed Forces there and elsewhere? 

the president. I don't want to be interpreted here as knowing any- 
thing about the law, if there is a law that applies. 

So far as I am concerned, every place that I have ever seen troops in 
the field, we have had the Red Cross; even in this country you have local 
voluntary groups. I can't see how it would affect it whatsoever. 

I had the Red Cross in Germany, after we had an armistice over 
there, and so I think that the Red Cross goes right ahead performing 
its many functions, in spite of the fact that shooting has stopped there. 

Q. Mr. Folliard: What I had in mind is, is there still the need? 

the president. Oh, indeed. You know, I can't imagine anything 
more difficult for a very great body of young, impatient, virile Ameri- 
cans than to be cooped up in occupational or other sorts of inactive 
duties. One of the reasons that the Army has tackled with such enthusi- 
asm and such success the rebuilding of South Korea is because it gives 
them something constructive to do, and they are doing it. 

Now, in that kind of a situation, I think there are many instances 
where you need the Red Cross far more than you do when the actual 
fighting is going on, because the fighting and the getting ready for it so 
absorbs the attention of people. 

Q. Anthony Leviero, New York Times: Mr. President, I wonder if 
you would listen to a question on the Peress case, and if it has been 
covered I would gladly scotch it. The public has been given two views 
of that, and one emanating from the Pentagon is that the handling of 
the case was essentially a redtape and paperwork muddle. I believe 
you have covered that in your statement. 

On the other hand, from the Hill, we get the contention that there 
was a deliberate covering up and coddling of a Communist. I wonder 
if you would comment on that point? 

the president. Well, you know, I don't mind. As a matter of fact, 
I had it in my statement once, because I did want to make some general 

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Dwight D. Eisenhower, IQ54 <& 48 

observations expressing my views in unequivocal terms, and it got so long 
that I just dropped it out. 

Actually, of course, I think that all of the detailed facts that have 
occurred over these last 10 months are not yet completely known. 

I don't for one minute believe that senior officers of the Army or the 
armed services have been trying to cover up anything of communism. 

You do have an unfortunate law — I say "unfortunate" — you do have a 
law that requires this: if you draft a doctor you are compelled to give him 
a commission. Well, that puts a great dilemma in front of an adminis- 
trator in the Army. 

Actually there is a case now decided by the appellate courts, I am told, 
that requires the Army now to pay back pay to a man that they refused 
to commission; they have to pay back pay as a captain or a major for 
the past x months, I don't know exactly what it is. 

So, I would say it was partly confusion — knowing how to handle such 
cases. 

You people might be amused a little bit to know that when I was in 
Europe a few years back, the French had to come up with this problem; 
after all, when you have got 25 or 30 percent of your people registered 
or voting in the Communist Party, and then you have a universal military 
service law bringing them in, think of their problem. 

Well, I used to discuss with them how they handled it. They did, of 
course, try to keep these people out of sensitive positions. And they had 
this one remarkable and very encouraging result: that the people who 
came into the Army as Communists, less than a quarter of them went out 
as such. They learned some things in the Army, apparently, they hadn't 
known before. 

Q. Mrs. May Craig, New England Papers: Mr. President, last year 
Senator Margaret Smith of Maine introduced a bill to outlaw the Com- 
munist Party or any similar organization under another name. Would 
you favor that? 

the president. I can't tell you for sure, Mrs. Craig, for this reason: 
when I came down here, one of the first things I asked was for a study 
on that, and lawyers have been fighting over it ever since. 

There seems to be a constitutional bar in just outlawing a particular 
political party in this country, and I believe that all convictions that have 
been secured against these leaders have been not on the word "Com- 
munist" but on their being a part of a conspiracy to destroy the American 

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<| 48 Public Papers of the Presidents 

form of government by force. So I don't know whether it can be done, 
and there certainly I wouldn't want to commit myself on something that 
was constitutionally so abstruse. 

Q. Lloyd Schwartz, Fairchild Publications: Mr. President, I would 
like to ask whether you have decided to reject a Tariff Commission pro- 
posal for special fees on imports of wool, now before you. 

the president. There is going to be an announcement a little later 
in the week, a public announcement; I could possibly just tie the thing 
up a little, but I have already approved certain actions, and for certain 
reasons, and they will be explained in a public statement. It will be out, 
I think, in 2 or 3 days. 

Q. Robert Spivack, New York Post: Mr. President, as you know, 
before the Army and General Zwicker were involved, witnesses had been 
abused also on the Hill, and one of the ideas that has been kicking around, 
which I don't think we have ever asked for your comment on, is the idea 
of combining these investigations under more responsible leadership. 
Would you tell us how you feel about that? 

the president. I have constantly stated that I recognize and respect 
the right of Congress to investigate into anything that it finds it necessary 
to investigate. Manifestly also, the business of determining their own 
rules, their own procedures, is a matter for the conscience of the Congress, 
and I have tried to point out that in the long run, certainly they are going 
to be responsive to the general will of the United States. I can state 
nothing more definite on that. 

Q. Nat Finney, Buffalo Evening News: Are you satisfied with the 
outcome of the debate on the Bricker amendment on Capitol Hill? 

the president. The only thing I can say is that I am very pleased 
that we can devote our efforts to concrete and specific parts of a program 
that I believe to be absolutely essential for building a stronger and better 
America ; that is all I can say on it. 

Q. Robert Richards, Copley Press: How do you think the Repub- 
licans are coming along with your advice to be kinder to Democrats? 
[Laughter] 

the president. I got a letter on it within 5 minutes before I came 
over here. I got a letter on it from a man in Maine who, at least, cheered 
my words, and maybe I will pass his letter around. 

Q. Marietta Dake, Niagara Falls Gazette: Mr. President, I was won- 

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Dwight D. Eisenhower, ig54 <][ 48 

dering whether you instructed the Republican leadership to see to it that 
each committee has at least one Republican and one Democrat in 
attendance at all times? 

the president. I can't possibly instruct the Senate as to its proce- 
dures. They have reported to me as to what they are planning to do, 
and I will wait until their program comes out, which certainly should 
be shortly. 

Q. Anthony Leviero, New York Times: Mr. President, Chairman 
Young of the Civil Service Commission reported yesterday to a committee 
on the subversive cases, the security risk cases. I wonder if you have any 
comment on that report? 

the president. Only one thing, and that is to emphasize to you 
ladies and gentlemen once more, I never used the word "subversives" in 
connection with the program that this administration designed to get rid 
of undesirables of any kind in this administration. I simply stated we 
are going to get rid of security risks. 

Now, Mr. Young is attempting to give you such information as is 
available and is proper to give out, and your problems will have to be with 
him. 

My own opinion is that they were bad security risks, and that is all. 

Q. Mr. Leviero: Well, Mr. President, following that up, long before 
this administration came into office, people were claiming they were 
treated unfairly, both under the loyalty and security programs. Has any 
thought been given to making characterizations of "unsuitable" instead 
of "security risks" where it relates to people who are not disloyal? 

the president. You bring up a word I had not thought of, but it 
might be, it might be that they could find — I think they did it, though, 
on this basis: if you find these people you call unsuitable by reason of 
personal habits or anything else, they become risks. I had this problem 
in the war. I had men when we were planning secret operations, if it 
was brought to me and proved that they were men that drank and, there- 
fore, were a little bit indiscreet in their social contacts, they were removed 
and in some cases reduced. The same principle, I think, applies; but 
you may have an idea that our people can look at. 

Merriman Smith, United Press: Thank you, Mr. President. 

note: President Eisenhower's twenty- 10:58 o'clock on Wednesday morning, 
ninth news conference was held in the March 3, 1954. In attendance: 256. 
Executive Office Building from 10:32 to 

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<f 4g Public Papers of the Presidents 

49 ^ Statement by the President on the 
Administration's Program for the Domestic Wool 
Industry. March 4, 1954 

ON JULY 9, 1953, on the advice of the Secretary of Agriculture, I re- 
quested the United States Tariff Commission to make an investigation, 
under Section 22 of the Agricultural Adjustment Act, to determine the 
effect of imports of certain varieties of sheep's wool on the operation of 
the domestic price-support program for wool. 

I now have the Report of the Tariff Commission, in which a majority 
of its members recommend the imposition of certain fees on imports of 
wool in addition to the prevailing duties. 

At the same time as the Tariff Commission inquiry was initiated, I 
requested the Secretary of Agriculture to make a comprehensive study of 
the domestic factors which have contributed to the decline in sheep num- 
bers and wool production in the United States, with a view toward the 
development of a sound and prosperous domestic wool industry consistent 
with an expanding international trade. 

On the basis of this study, w r hich was carefully analyzed and discussed 
by the interested agencies of the Executive Branch, I determined that 
domestic wool growers required continued price or income assistance 
in a more effective form than is now provided. I accepted the principal 
recommendations of the Secretary of Agriculture, which provide for 
government assistance to growers under an incentive payment plan dur- 
ing periods when wool prices are below the desired support level. 

These recommendations have been submitted to the Congress. Hear- 
ings have been held before the Senate Committee on Agriculture and 
Forestry and a bill embodying these recommendations has been approved 
by that Committee. The enactment of this program by the Congress 
would eliminate the necessity for an increase in import fees or other 
limitations on wool imports, a course of action which I do not believe 
would best serve either the wool growing industry or the national interest. 
I am confident that this new program will appreciably contribute to 
the achievement of a sound and prosperous domestic wool industry, an 
essential component of a healthy overall economy and a strong defense. 

In view of the fact that the Administration's new wool program is 

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Dwight D. Eisenhower, ig$4 fft 50 

specifically designed to help remedy those conditions which prompted 
the Tariff Commission's investigation, I am taking no action on the 
Commission's Report. 

50 ^ The President's News Conference of 
March io, 1954. 

the president. I have only one announcement. It is very inconse- 
quential. Sometime during the coming week I shall probably go on the 
air to discuss the general contents of the tax program. As you know, 
the administration is committed — the administration of the Republican 
Party — to a program, the pieces of which have gone down to the Congress 
in the form of legislative proposals and, all together, make up a plan of 
action that we believe to be good for the United States. 

Of that, taxes is part. The purpose of taxes is, of course, to get the 
money to pay the bills for the things you have to do, or believe desirable 
for Government to do, for its people — and to do it in such a way as to 
cause not only the least damage to the economy but to the great mass 
of people that make up the United States, and cause the burdens to be 
distributed in such a way that we will not impede the very progress you 
are trying to advance. 

So it will be discussed. The only point of my making the statement 
now is that the tax program will be discussed in its relationship to what 
we are trying to do in a broad program. 

That is the only statement I have to make. We will go right to 
questions. 

Q. Merriman Smith, United Press: Mr. President, do you feel that 
there is a need for any additional Republican reply on a nationwide basis 
to Adlai Stevenson other than Vice President Nixon's speech Saturday? 

the president. Well, I don't sense any particular need myself. I 
think all you people know how greatly I admire the Vice President, 
how much I trust him. I have confidence that he will place the facts 
as he understands them, and as all of us in a position of responsibility in 
the Republican Party understand them, before the people; and that will 
be that. 

Q. Robert G. Spivack, New York Post: Mr. President, in connection 
with the selection of Vice President Nixon to reply, does that mean that 

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<][ 50 Public Papers of the Presidents 

Senator McCarthy will not be speaking for the party in the '54 campaign? 

the president. You pose a question that I don't suppose anyone in 
the world can answer. I suppose when he speaks, he will say he is 
representing what he chooses. The Republican Chairman has made it 
quite clear in this instance who has been selected to speak for the party, 
and that is that. 

Q. Martin Agronsky, American Broadcasting Company: It has been 
reported, sir, that you personally chose the Vice President to respond 
to Mr. Stevenson, and communicated your wishes to Mr. Hall; is that 
correct? 

the president. There was a meeting at which I participated, and I 
don't remember that I was the one that suggested it. I most certainly 
concurred heartily. I can't remember, frankly, who made the first 
suggestion that Mr. Nixon should do it, but I certainly concurred 
heartily. 

Q. Richard L. Wilson, Cowles Publications: Mr. President, last Sat- 
urday night the proposition was put forward that the Republican Party 
is half Eisenhower and half McCarthy. Would you care to comment 
on that? 

the president. At the risk of appearing egotistical — and you can so 
interpret it if you choose — I say nonsense. 

Q. Edward T. Folliard, Washington Post: Mr. President, this is 
related to Merriman Smith's question. Do you think that the big net- 
works have been fair in giving time to the Republican National Com- 
mittee to answer Governor Stevenson rather than to Senator McCarthy? 
McCarthy feels that the networks have been unfair. 

the president. I am not going to make the decisions that, of course, 
the Federal Communications Commission makes, and that the networks 
make on their own responsibility. Personally, I think that the networks 
have certainly discharged their responsibility for being impartial when 
they give to the Republican National Committee the right to answer as 
they see fit. 

You know, suppose any one of you would make a speech, whatever 
party you belong to, and mention 20 names on the other side; now, does 
the network have to give 20 different people the right to get up and 
answer, or is it a party thing? 

There must be some limit to this sort of thing. I believe as long as 
they give to responsible, acknowledged heads of the organization part 

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Dwight D. Eisenhower, ig^4 <$ 50 

of the party — the Chairman — the right to determine this, why, that is 
justice. 

Q. Mrs. May Craig, Maine Newspapers: Mr. President, do you not 
regard the Stevenson speech as a part of the Democratic campaign for 
Congress, and therefore it should be answered by the party — by the 
Republican Party? 

the president. Yes, indeed I do. Of course I do. 

Q. Roscoe Drummond, New York Herald Tribune: Mr. President, 
will you tell us whether you find yourself in substantial sympathy with 
it, or what your reaction is to it if that is not correct, to Senator Flanders' 
talk yesterday in the Senate? 

the president. Well, I was perfectly certain I wasn't going to get 
through this morning without getting that question. [Laughter] 

And I thought about it on the way over. [Laughter] 

Now, certainly, I can agree with this part: the Republican Party is 
now the party of responsibility, so charged by the people of the United 
States in the elective process. And when Senator Flanders points up 
the danger of us engaging in internecine warfare, and magnifying cer- 
tain items of procedure and right and personal aggrandizement, and all 
such questions, to the point that we are endangering the program of 
action that all the leadership is agreed upon and we are trying to put 
across, then he is doing a service when he calls the great danger to that 
kind of thing that is happening. 

Now, I am not going to be in a position of endorsing every word he 
said or how he said it. I don't know; all I saw of it was a little bit of 
thing on television last evening, and so I know you wouldn't ask me 
just to say I underwrite it. But I do say that calling attention to the 
grave error in splitting apart when you are in positions of responsibility 
and going in three or four different directions at once is just serious, 
that's all. 

Q. Anthony H. Leviero, New York Times: Mr. President, I wonder 
if you would put that much on the record, the answer to that question. 

the president. I will tell you what you can do. I believe they keep 
a transcript; after the meeting is over, Mr. Hagerty can see how many 
errors of grammar, of which I was guilty, when I stated it — [laughter] — 
and if he thinks it is worthwhile stating it, or if it is all right, you can put 
it in. 



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Q. Richard L. Wilson, Cowles Publications: Can we include that 
"nonsense" part in that quotation? 

the president. I forget. I said about — half and half, you said? 
That was the question? 

Q. Mr. Wilson : Yes. 

the president. As far as I am concerned, you can use my influence 
with Mr. Hagerty. [Laughter] 

Q. Laurence H. Burd, Chicago Tribune: I would like to ask about 
the Manion resignation. We have never had any statement from the 
White House on it. Dr. Manion said he was asked to resign by Sherman 
Adams, presumably because of his stand on the Bricker amendment and 
the TVA. My question is, can you tell us who was responsible for the 
Manion resignation and why it was asked for? 

the president. Actually, Dean Manion, a very estimable man, was 
entitled to his own opinions on those certain items, and they were never 
questioned. I knew where he stood on certain things when I asked him 
to do a certain job. But he was busy and couldn't do the job that he was 
asked for. The job requires a continuous devotion to that kind of work. 
As a matter of fact, we are hunting for the man now that can give full 
time to that kind of work. 

Q. Mr. Burd : It was a question of time, was it not? 

the president. So far as I was concerned, yes. 

Q. M. Stewart Hensley, United Press: Senator Anderson yesterday 
formally called up his amendment to tack Alaska onto the Hawaiian 
statehood bill. Do you have any comment on that at all? 

the president. Well, our leadership has promised to do its best to 
keep them separate, and I personally favor that plan. 

You people know where I have stood on this business of statehood for 
the two Territories. You know that I take a platform seriously. I am 
trying very much to carry out the basic promises of the Republican plat- 
form. I note that some of them are paralleled in the Democratic plat- 
form. So I don't see any reason why each of these subjects can't be han- 
dled on its own merits. 

Q. Robert G. Spivack, New York Post: Mr. President, this is on a 
less controversial subject. Have you ever had your coffee report? 

the president. Ever had what? 

Q. Mr. Spivack: The report on the coffee investigation that you 
announced. 

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Dwight D. Eisenhower, IQ54 ^ 50 

the president. No, I haven't. Will you look that up? I don't 
know whether that is completed, the major one. I gave you the results 
of the preliminary, which they said, you will remember, justified a full- 
scale investigation. The reports on that full-scale, I have not had. 

Q. Kenneth M. Scheibel, Gannett Newspapers: Mr. President, there 
seems to be increasing support in Congress and among the farm organi- 
zations that we sell part of our surplus butter to Russia for 40 or 50 cents 
a pound, provided part of that surplus is made available in this country 
at a reduced price. Could you tell us if you would favor such an 
arrangement? 

the president. I haven't heard just exactly that one. I, of course, 
believe that where the United States interests indicate the need for a 
barter arrangement to get something that we need and can preserve in 
place of butter which we apparently don't need, because it is in storage, 
and which is perishable, that would be a good deal, in my estimation. 

Q. Mr. Scheibel : Would you extend that to include all the other farm 
surpluses we have, swapping for materials? 

the president. Certainly, the great surpluses. I really believe we 
should look for ways to trade them advantageously to the United States. 
That is what barter is, that is what trade is, that is what made this country, 
in many ways; and I don't think we should fear now our ability to trade 
to the best interests of the United States. But, on the other hand, I realize 
there are a thousand different considerations that apply to this delicate 
thing of disposing of these surpluses, both at home and abroad. 

Q. Paul Shinkman, Radio Stations WASH-FM and WDON: Prime 
Minister Churchill said last week that he still felt that a four-power con- 
ference at the top level would be helpful in the foreseeable future. Do you 
have any comments on that subject? 

the president. Of course, I have disagreed with Winston — with the 
Prime Minister in the past. Here, in this one, I will put it this way: 
I fail to see at this moment what good could come out of it. Of course, 
there are always the possibilities of great difficulty coming. 

Now, I have approved numbers of conferences for our Secretary of 
State participating with other foreign ministers. Incidentally, I must 
say, I think he has handled himself like a master. I know of no one 
who could have done better than Secretary Dulles in representing the 
best interests of the United States in the most confusing and trying of 
circumstances. I think we are fortunate to have such a man. 

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($ 5° Public Papers of the Presidents 

Q. Charles S. von Fremd, CBS Television: Mr. President, the Colonel 
Schwable case has raised an important argument, the two sides of which 
you are probably quite familiar with, with your distinguished military 
background. On the one side, the military naturally fears from the 
standpoint of precedence to have its men admit to false confessions, while 
from the humanitarian standpoint, it is easy to understand and sym- 
pathize with a man who makes a false confession under duress or torture. 
Not referring specifically to the Colonel Schwable case, sir, can you give 
us your general views on this entire military situation, or problem? 

the president. Well, when you begin to talk about military prob- 
lems, you must certainly relate that problem to the times in which you 
live. 

If you will go back to our Revolutionary War times, you will find there 
were codes that existed among professional fighting men that were almost 
independent of international law. If you captured a general, he was 
your guest; you took him in; you were very nice to him. He might be 
the guest of the conquering general for 2 or 3 days. 

There was a sort of understanding that controlled most of our contacts 
with the enemy, and out of that were translated really the rules of land 
warfare to which many nations adhered. 

Today, with hatreds and prejudices sharpened, all brought about by 
very deep, underlying differences in ideologies, the very basis by which 
we live — we think we are a religious civilization; our opponents in the 
world believe in a materialistic dialectic and nothing else, that only mate- 
rialism has anything to do with man's happiness, man's progress, and 
man's concern — these bring about very, very great changes. 

Now, you must remember that all the early part of my life I was study- 
ing the campaigns, the conduct of past wars and past heroes of mine — 
a Lee and a Washington, people like that. 

Today you have got to be a rather understanding individual if you 
presume to criticize severely someone who has given way to the things 
that these men have had to endure. Indeed, I read only recently that 
one psychiatrist said that there is no man on earth that under the con- 
tinued process of brainwashing can fail to make the confession desired of 
him. 

There is, of course, like all things, a rule of reason that applies. You 
can't take back such people and ask young America to follow them enthu- 



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Dwight D. Eisenhower, 1Q54 <J 50 

siastically. On the other hand, we mustn't condemn them too severely. 
It is a very, very hard problem. And I must say this: in some 13 years — 
or something like that, maybe they are not continuous, they seem almost 
that — that you have to sit in judgment on other humans' failures, legal 
and other failures, you have to sit in and take final action on them, it is 
a very trying thing. First of all, you must think of punishment as being 
instituted for the protection of society, the society that you know. On 
the other hand, you have justice to the individual. Frequently your 
opinions and convictions differ. It is a very, very difficult problem, and 
sometimes that is one of the burdens you wish could be removed from 
your shoulders. I carried it a long time, and I have no really definite 
answer for it. Sorry. 

<?. Marvin L. Arrowsmith, Associated Press: Mr. President, there has 
been a great deal of talk among some Republicans lately that the word 
has gone out from you that you want much more emphasis on the posi- 
tive aspects of the administration's program. Possibly your answer on 
the Senator Flanders' speech gives some of the reasons, but I wonder if 
you could tell us if that is so, if you feel there should be more of that 
emphasis. 

the president. Mr. Arrowsmith, I thought I had emphasized that 
right here in one of these meetings. I don't believe that things negative 
promote the happiness of people. I believe that you must go forward in 
the spiritual and intellectual, cultural, economic development of this 
country if we are going to make it a place where 161 million people can 
live in happiness — and the increasing population can live in happiness. 

Now, all the things that distract from that effort, they are sometimes 
necessary. All of these things, these corrective, and therefore punitive 
measures, are sometimes necessary; but what I complain about is their 
overemphasis. The overemphasis of those things to the exclusion of a 
positive program of human welfare, human advancement, that is what 
I complain about. I think it is very wrong. And I have certainly 
appealed to everybody that I can reach with my voice to give their 
attention — not necessarily to agree with every single item in this pro- 
gram, but for goodness' sake, to take out what is good and to stand 
behind it, and to give less attention to subjects that are unworthy, really, 
of occupying our time from morning until night. 

Q. Edwin Dayton Moore, United Press: Mr. President, are you going 

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<J 50 Public Papers of the Presidents 

on both television and radio with your tax talk? And do you have any 
idea what night it will be? 

the president. As a matter of fact, I haven't even asked for time yet. 

Actually, what I mean is this. I want most informally and as simply as 
I can to explain the philosophy underlying a tax program, what it means. 
I assume, because I believe this is the practice, I assume that it will be 
on both television and radio because, I assure you, it will be nonpartisan 
as far as I am concerned. 

Q. Paul R. Leach, Chicago Daily News: Will that be next week, Mr. 
President? 

THE PRESIDENT. I think SO. 

Q. Mr. Leach : Not this week? 

the president. Well, what are we on now? We are on Wednesday. 
Next week. 

Q. Sarah L. McClendon, El Paso Times: Mr. President, we all know 
how you feel about the Bricker amendment and about keeping the 
powers of the executive branch independent of the others. But if some 
examples of flagrant cases, where the international executive agreements 
negotiated by agencies of the executive branch of the Government were 
presented to you, where these agreements, made internationally, violate 
internal law, would you be inclined to reconsider those agreements and 
to disapprove them? 

the president. Well, it is a very intricate hypothetical question. I 
haven't seen these agreements, and I don't know exactly what I would 
do. But I will say this: if I have gotten so rigid in any conviction of 
theory that I can't take any case that is put in front of me and try to 
decide it with such enlightenment as God has given me according to 
what I believe to be the best interests of the country, then certainly 
they ought to move rapidly to impeach me. I certainly would try to do so. 

Q. James J. Patterson, New York News: Mr. President, Senator 
Stennis said yesterday that we were in danger of becoming involved in 
World War III in Indochina because of the Air Force technicians there. 
What will we do if one of those men is captured or killed? 

the president. I will say this: there is going to be no involvement 
of America in war unless it is a result of the constitutional process that 
is placed upon Congress to declare it. Now, let us have that clear; and 
that is the answer. 



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Dwight D. Eisenhower, ig$4 {J 50 

Q. Anthony H. Leviero, New York Times: Mr. President, Chancellor 
Adenauer suggested the other day that we ought to return the seized 
German assets in this country. I wonder if any decision has been reached 
on that. 

the president. Well, there has been no decision. It has been a sub- 
ject of study since, I think, almost the first day I came into this office. It 
is a very difficult one. I personally believe that this matter should be 
settled, cleared up, once and for all, and we get out of the business. 
That is what I am trying to do. 

Q. John Herling, Editors Syndicate: Mr. President, do you plan to 
send up a supplementary message on labor relations to Congress? 

the president. I don't know. There is probably never a week goes 
by that there are not serious talks on some phase of labor relations, 
someone coming in to make a recommendation. There is no plan at 
this moment to send a specific message up ; however, that doesn't preclude 
the fact that I could. 

Q. A. Robert Smith, Portland Oregonian: Mr. President, about 3 
weeks ago, you issued a formal statement at your news conference 
endorsing a dam in Oregon, Cougar Dam, and you said that this exem- 
plified what you have meant all along as a partnership proposal — that 
the Federal Government would build the dam and the local utility would 
install the generators. 

At about the same time, a group of Arkansas Senators and Representa- 
tives called on Mr. Dodge at the Budget Bureau, in trying to urge him 
to have the Federal Government proceed to build several additional 
dams on the White River. They reported that he said that hereafter 
the partnership policy was the only thing that would be followed in the 
construction of dams in the West, and in the South, too; that is, only 
in cases where local utilities would install the generators. Now, can 
you clarify that? 

the president. Well, it has never been stated in that way. If you 
will go back over every statement that I have ever made about this 
question of public power, you will find, on the erection of these multiple- 
purpose dams, that wherever it is feasible, I want local participation; 
because I believe you will get greater economy and greater care in the 
operation and the building and the use to which the dam is put. 

Now, it is also acknowledged in every single statement, there can be 
cases where it is so exclusively to the Federal advantage to do this thing, 

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<$ 5° Public Papers of the Presidents 

of course, they will do it then. The rule of looking for the partnership 
is exactly what I hope to follow, but I don't preclude the possibility that 
these others come up. Of course, they do. 

Q. Garnett D. Horner, Washington Star: Mr. President, do you 
have any travel plans for this weekend that you can tell us about? 

the president. As a matter of fact, I hope to go up to Camp David, 
if I can. Now, there is still doubt in the way, but I want to go up and 
take a look. As a matter of fact, from there, I think I might say, I would 
hope to roam around at least as far as a little local golf course that 
some of you may know about. 

Q. Mrs. May Craig, Maine Newspapers: Mr. President, could I have 
a second question? Would you comment on Stevenson's criticism of 
your "new look" defense program? 

the president. Well, of course, I comment on nothing that other 
individuals say. I would merely comment, here, this: I have spent a 
long time in the military services. In all the really important positions 
I ever had, I dealt with the three services, not with the single one — I 
mean, in important positions in higher rank. 

I am concerned about the security of this country, I hope, as seri- 
ously as any single individual alive. If I have too much confidence in 
my own judgment here, well, that is for someone else to say, and I am 
therefore subject to criticism. But I will say this: I am doing nothing 
in the security departments that I don't believe is for the welfare and 
the security and the continued safety of the United States of America, 
and I am not going to demagogue about it. 

Q. William V. Shannon, New York Post: Mr. President, along that 
line, there has been criticism that, unlike Presidents Roosevelt and Tru- 
man, that this administration has engaged in insufficient prior consultation 
with the leaders of the opposition party in forming defense and foreign 
policy. Would you care to comment on that? 

the president. You say they are complaining because we are guilty 
of insufficient? 

Q. Mr. Shannon: Yes. 

the president. You haven't heard the statements made to me that 
they were never consulted in the last 20 years, according to my reports, 
except after a decision has been made — the fait accompli, and here it is. 
That has been the complaint made to me. We have been going to 

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Dwight D. Eisenhower, ig^4 <J 50 

extraordinary lengths, and they look at me sometimes rather askance 
because of my insistance on it. 

I would say the shoe is on the other foot so far as my reports go. 

Q. Anthony H. Leviero, New York Times: Apropos of the "new 
look" question, Mr. President, is there any change in the procedures of 
the Joint Chiefs of Staff in considering defense policies? Any change 
since you came? 

the president. None at all. Look. Let us go back to that question 
again for a minute. We recognize one thing, and one thing has caused 
the new look, so called. As you know, I despise all slogans; I don't think 
they are truly descriptive of anything. But we were in an emergency 
pointing up toward some fancied date. They selected July 1, 1952, '54, 
or whatever — you pick the date — but we were working toward that. 

What I ask all of us to remember is this : the free world is picking up a 
burden that it may have to carry on indefinitely. We can't look forward 
to a solution to the problems we have inherited as of next year or even in 
the next decade, possibly not in our lifetime. We have got to be able to 
carry this forward and in such a way that it will not wreck the very con- 
cepts on which all free government is constituted. 

Now, all that we are trying to do is to get these things so put together 
in view of their extraordinary, almost extravagant, cost and expense, to 
get all these things put together so that the free world can pick up this 
burden which is bound to remain a burden, and do it in a way that we 
don't have to abandon it at a critical point along the road, or we don't 
have to get hysterical with fear because we are afraid we are not doing too 
much. 

Remember, there are considerations on both sides of such problems or 
they wouldn't be problems. But we must, I insist, be ready for the long 
term, and that's a fact. 

Merriman Smith, United Press: Thank you, Mr. President. 

note: President Eisenhower's thirtieth o'clock on Wednesday morning, March 
news conference was held in the Execu- io, 1954. In attendance: 181. 
tive Office Building from 10:33 to 11:01 



51986—60 23 3°9 



<| 51 Public Papers of the Presidents 

51 ^ Remarks at Conference of the National 
Association for the Advancement of Colored 
People. March 10, 1954 

Ladies and gentlemen: 

From time to time the President of the United States has the privilege 
of appearing before a body of Americans assembled here in Washington 
to extend to them greetings on behalf of the administration and of the 
Federal Government here located. 

And certainly, more often than not, he also has the privilege of extend- 
ing felicitations and well wishes in the prosecution of their work. 

It is the last part of this statement that I want to refer to for a moment. 
My welcome to you is warm and sincere, but I should like also to take 
your time to talk about the good wishes that I extend for the prosecution 
of your work. 

I believe most sincerely in the statement of Lincoln that this nation 
was dedicated to the proposition that all men are created equal. I be- 
lieve with the writers of the Declaration of Independence that men are 
endowed by their Creator with certain rights. And furthermore, I 
believe that the vast majority, the great mass of Americans want to make 
those concepts a living reality in their lives. 

I was talking only a few minutes ago with some of your leaders in the 
anteroom just off this hall. I had a chance to express my belief that all 
of us can take inspiration from this one thought : the great faith of the 
American people taken in the mass. 

There are vociferous minorities. There are people who, for selfish or 
for fearful reasons, do not fully live up to the concepts held and so elo- 
quently stated by our Founding Fathers — or by Lincoln. But, by and 
large, the mass of America wants to be decent, and good, and just. 

Our people do not want to make differentiations among people based 
upon inconsequential matters of nature involving color and race. 

Admitting quickly — even if sadly — that the ideals of those people have 
not been reached, let us still remember this: this same thing is true of 
everything we do in life. Ideals are really never reached by imperfect 
humans. But the striving for them makes better both the great body we 
are trying to affect and ourselves. 

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Dwight D. Eisenhower, IQ54 f§ 52 

And so — and I hope, my dear friends, that doesn't sound like a 
sermon — I am merely trying to state my beliefs as fully and as frankly 
as I know how to do. But I believe that this struggle, this one that in 
your case now has gone on for, lo, these many decades, is producing 
results on the part of the administration. 

I stated my own personal views many times before the election. I have 
tried to state them since. Wherever Federal authority clearly extends, I 
will do the utmost that lies within my power to bring into living reality 
this expression of equality among all men. 

By no means do I come here to make a political statement or to outline 
for you what has been done. But I do submit that in the two areas that 
I spoke about in the campaign, definite progress has been made. It is in 
the areas of all the armed services and where their territories and func- 
tions and activities extend, and right here in the District of Columbia. 
With respect to these, I expressed certain convictions and determinations. 
Not in all cases have the full results been achieved. But we are still 
trying. I know of no other slogan that is so good for all of us as once 
we have determined upon and visualized a worthy ideal, to keep on trying 
with all that is in us. 

I wish for each of you an enjoyable time in this Capital. I hope that 
you, aside from the fruitfulness of your work, have the satisfaction of 
seeing something around this town that you will carry back with really 
fond memories. I hope that you will find something just outside of the 
beauty of the buildings and the niceness of nature. 

For all of you — good luck and goodbye. 
note: The President spoke in the Departmental Auditorium at 12:30 p.m. 

52 ^ Statement by the President on the Approval 
by the Belgian Parliament of the European Defense 
Community Treaty. March 12, 1954 

I HAVE JUST been informed that Belgium, by the vote of its Senate 
today, has completed all parliamentary action leading to ratification of 
the treaty establishing the European Defense Community. Belgium has 
thus become the third nation whose legislature has taken this important 
step. 

3" 



<][ 5 2 Public Papers of the Presidents 

One of the most important conditions essential to assuring lasting 
peace will be met when an integrated and, therefore, stronger European 
Community has been built. I am gratified that steady progress is being 
made toward this goal. 

53 ^ Remarks on Dedicating by Remote Control 
the First Power Unit at Fort Randall Darn, South 
Dakota. March 15, 1954 

Governor Anderson, and all Americans participating in the ceremony 
at Fort Randall Dam this morning: 

It is both an honor and a privilege to be able to gather with you people 
by the means of this long distance cable in dedicating the first power 
unit that Fort Randall Dam will operate. 

The occasion is significant not only to the individuals who will benefit 
directly from the flood control features, the navigation, the power, the 
irrigation — everything that will come from this dam. It is a symbol also 
of what we all over America must do about our most precious natural 
resource. By this I mean water. Water uncontrolled, improperly used, 
can cause us more damage in this country, possibly, than almost any 
other single element. Properly used, properly harnessed, it can be our 
greatest resource. 

It is one of my most earnest ambitions, an ambition shared so far as I 
know by every political leader of both parties in Washington and else- 
where and by all of my associates in the Cabinet — to make certain that 
we find the best and most intelligent ways of participating through a com- 
bination of Federal, State, and local assets in developing the water re- 
sources of our country so as to be of lasting benefit for the whole Nation, 
now and always. 

And now, my friends, with these very few, but very earnest remarks, it 
is my privilege to press the key that will start in operation this first power 
element at Fort Randall Dam. 

note: The President spoke in the Cabinet Room at 12:30 p.m. 



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Dwight D. Eisenhower, ig^4 <| 54 

54 <§ Radio and Television Address to the 
American People on the Tax Program. 
March 15, 1954 

[ Broadcast from the White House at 9 : 00 p.m. ] 

Good evening, my friends: 

I would like to talk with you tonight about something that concerns 
each of us personally and directly — especially on March 15th. I want to 
talk about our taxes — and about the new tax program that Congress will 
debate this week. 

Now, I can talk only about a few essential facts in this program because, 
my friends, this 900-page book is the new tax program, and this 500-page 
book is the explanation made by the Ways and Means Committee of the 
House of Representatives to the House regarding this bill. You and I 
tonight will be discussing only a very few of the high spots. 

Now, we recognize, of course, that taxes are necessary. We know 
that through taxes our Government gets the money to carry on its neces- 
sary functions. The most costly is defense. 

Only at our peril may we pursue a penny wise, pound foolish policy in 
regard to the Nation's security. In the past year, we have been able to 
make real savings in defense costs. But despite these savings, 70 cents 
out of each dollar spent by your Government still go for defense purposes. 

The remaining 30 cents go for many things: to meet our obligations 
to veterans — to carry on important activities overseas — to pay the interest 
on the gigantic public debt — and to do within our country what Abraham 
Lincoln described as "those things which the individual cannot do at all 
or so well do for himself." 

I know how burdensome your taxes have been and continue to be. 
So we are watching every expenditure of Government — to eliminate 
waste, duplication, and luxury. But while we are insisting upon good 
management and thrift in Government, we have, at the same time, asked 
the Congress to approve a great program to build a stronger America for 
all our people. 

So let me give you some examples of the things we want to do in this 
program : 

We want to improve and expand our social security program. 

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<][ 54 Public Papers of the Presidents 

We want a broader and stronger system of unemployment insurance. 

We want more and better homes for our people. 

We want to do away with slums in our cities. 

We want to foster a much improved health program. 

We want a better and a lasting farm program, with better reclamation 
and conservation. 

We want an improved Taft-Hartley Act to protect workers and 
employers. 

We want wider markets overseas for our products. 

We want — above all — maximum protection of freedom and a strong 
and growing economy — an economy free from both inflation and 
depression. 

Most of these things cost money. Without adequate revenue, most of 
them would be abandoned or curtailed. That is why our tax proposal 
is the cornerstone of the entire effort. It is a tax plan designed to be 
fair to all. I am sure you join me in the hope that the Congress, before 
it adjourns, will approve this program for a stronger America. 

And along with this great plan for America, we want also to reduce 
your taxes so you can save or spend more of your own money, as you 
personally desire. 

Now, to reduce taxes, we had to find some way of saving money, for 
despite many years of heavy taxation, our Government has been running 
deeper and deeper into debt. A year ago, this administration inherited 
a budget calling for a spending program that we have since reduced by 
twelve billion dollars. Of this total saving, seven billion dollars is being 
made this year. 

Now, seven billion dollars is so much money — even in Washington — 
that it's hard to know what it really means. Let's see if we can get some 
idea of how much it is. 

The money American farmers got last year for all the corn and all 
the wheat grown in our entire country was seven billion dollars. 

The money Americans paid in all of last year for household utilities 
and for fuel amounted to seven billion dollars. 

The money Americans pay each year for doctor, dentist, medical and 
hospital bills is seven billion dollars. 

Now, I think you will agree that we have, indeed, saved a lot of 
money. Without these savings, there could have been no tax relief for 
anyone. Because of these savings, your tax cuts were possible. 

3i4 



Dwight D. Eisenhower, ig$4 <][ 54 

On January 1st this year your taxes were cut by five billion dollars. 
The tax revision program now in Congress will cut taxes by over one 
and a half billion dollars more. The total may be nearly seven billion 
dollars. Thus the Government is turning back to you about all that we 
expect to save this year. Meanwhile, we are seeing to it that the Gov- 
ernment deficit, instead of growing, may continue to shrink. 

Now, in the light of all this, let's look at the tax program now in 
Congress. 

To start with, it is the first time in half a century that our tax laws 
have been completely overhauled. This long overdue reform of old tax 
laws brings you benefits which go beyond the tax reductions I have just 
mentioned. Millions of individual taxpayers — many of you listening — 
will benefit. Now here are some of the ways in which you will benefit: 

You will have larger deductions for your medical expenses. 

There will be special deductions for the cost of child care for those 
among you who are widows who work. 

Fairer tax treatment for the widows of policemen and firemen and 
others who have fraternal or private pension plans. 

Fairer tax consideration for those of you who are retired. 

Deductions of up to $100 a week for those of you receiving sickness or 
accident benefits. 

There are, in addition, important provisions to encourage the growth 
and expansion of industry, the creation of jobs, and the starting of new 
and small businesses. 

Now, one of these provisions is of particular interest to those among 
you who have made or want to make investments to help meet the 
expenses of a growing family or to meet the requirements of old age. 
This year, we proposed to reduce by a modest amount or percentage the 
existing double taxation on dividend income. 

This will be important to all of us, whether our savings are large or 
small. It will encourage Americans to invest in their country's future. 
And let us remember this most important fact: the average investment 
needed to buy the tools and facilities to give one of our workmen a job 
runs about eight to ten thousand dollars. The more we can encourage 
savings and investments, the more prosperous will be 160 million 
American citizens. 

Just as we need more spending by consumers, so we need buyers for 
items produced by heavy industry — for lathes and looms and giant gen- 

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<][ 54 Public Papers of the Presidents 

erators. The making of these things gives jobs to millions of our people. 
This carefully balanced tax program will encourage this kind of produc- 
tion. It will make new jobs, larger payrolls, and improved products. 
It will give us lower price tags on many of the things we want and need. 

And here is another important part of this program. It concerns the 
income tax on corporations. Under the law, this tax would be reduced 
two weeks from today. Now I have asked the Congress to keep this 
tax at 52 percent and not to permit it to go down to 47 percent at this 
time. The extension of this extra tax on corporations will provide 
enough money to pay the costs of the benefits this tax revision program 
will bring to individuals and business. 

So, there you have, in broad outline, the new tax revision program. 
I most earnestly hope that the Congress will pass it. 

But — this is an election year. Some think it is good politics to promise 
more and more Government spending, and at the same time, more and 
more tax cuts for all. We know, from bitter experience, what such a 
policy would finally lead to. It would make our dollars buy less. It 
would raise the price of rent, of clothing, and of groceries. It would 
pass on still larger debts to our children. 

Some have suggested raising personal income tax exemptions from 
$600 to $800, and soon to $1,000, even though the Federal budget is 
not in balance. You've seen this kind of deal before. It looks good on 
the surface but it looks a lot different when you dig into it. 

The $ 1 ,000 exemption would excuse one taxpayer in every three from 
all Federal income taxes. The share of that one-third would have to be 
paid by the other two-thirds. 

I think this is wrong. I am for everybody paying his fair share. 

When the time comes to cut income taxes still more, let's cut them. 
But I do not believe that the way to do it is to excuse millions of 
taxpayers from paying any income tax at all. 

The good American doesn't ask for favored position or treatment. 
Naturally he wants all fellow citizens to pay their fair share of the taxes, 
just as he has to do, and he wants every cent collected to be spent wisely 
and economically. But every real American is proud to carry his share 
of that national burden. In war and peace, I have seen countless exam- 
ples of American pride and of the unassuming but inspiring courage of 
young American citizens. I simply do not believe for one second that 

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Dwight D. Eisenhower, IQ54 ^ 54 

anyone privileged to live in this country wants someone else to pay his 
own fair and just share of the cost of his Government. 

Aside from that, let's just be practical. The loss of revenue involved 
in this proposal would be a serious blow to your Government. 

A $100 increase in the exemption would cost the Government two and 
a half billion dollars. To increase the personal exemption to one thousand 
dollars would cost eight billion dollars. This, of course, would be on top 
of the large tax cuts our savings have already made possible this year. 

Now, in your interest I must and will oppose such an unsound tax pro- 
posal. I most earnestly hope that it will be rejected by the Congress. 
Especially, I hope you feel the same way. 

Every dollar spent by the Government must be paid for either by taxes 
or by more borrowing with greater debt. To make large additional savings 
in the cost of Government at this moment means seriously weakening our 
national defense. I do not know any friend of the United States who 
wants that, under present world conditions. Now the only other way to 
make more tax cuts now is to have bigger and bigger deficits and to borrow 
more and more money. Either we or our children will have to bear the 
burden of this debt. This is one kind of chicken that always comes home 
to roost. An unwise tax cutter, my fellow citizens, is no real friend of the 
taxpayer. 

Now, this evening I mustn't overlook those among us who are profes- 
sionally faint hearted. They have been arguing lately that we are on the 
very brink of economic disaster. Viewing with gloom is only to be ex- 
pected in the spring of an election year. The truth is, we do not have a 
depression. And what's more, as I have said time and time again, your 
Government will continue to use its full powers to make sure that we 
don't have one. 

A month ago, I expressed to the Congress my conviction that we would 
be able to go from wartime to peacetime conditions without serious eco- 
nomic trouble. Nothing has happened since to change my mind. 

Some unemployment has developed in different parts of the country, 
but the Nation as a whole continues to be prosperous. Unemployment 
has reached about the level it was in the spring of 1950. The broad pro- 
gram I have proposed to the Congress will strengthen our economy. 
When it is approved by Congress, it will both increase the number of jobs 
and help make every man secure in the job that he has. 



51986—60 24 



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<J 54 Public Papers of the Presidents 

Of course, everyone wants tax reductions of the right kind, at the right 
time. That specifically includes this administration. This has been 
proved by the large tax cuts we have already made possible this year. But 
at this time economic conditions do not call for an emergency program 
that would justify larger Federal deficits and further inflation through 
large additional tax reductions. 

My friends, a century and a half ago, George Washington gave us some 
good advice. He said we should keep a good national defense. He also 
said we should not ungenerously impose upon our children the burdens 
which we ourselves ought to bear. 

I know you and I agree with Washington on these points. 

We agree, too, on efficiency in Government, and on a forward-looking 
program for a stronger America — an America whose people know good 
health and prosperity — who are secure, day and night, from fear at home 
or abroad. That is the aim of this tax program. 

That goal, my fellow citizens, is a goal worthy of our people. 

55 ^ Letter to the Governors of the States and 
Territories Requesting Them To Serve as Honorary 
Chairmen, United Defense Fund. 
March 16, 1954 

[ Released March 16, 1954. Dated March 15, 1954 ] 

Dear Governor : 

Some time ago, I accepted the Honorary Chairmanship of the United 
Defense Fund. I did this because of my deep conviction that the defense 
of this country depends upon the voluntary activities of its citizens, as 
well as upon the authority of government. I am delighted that General 
of the Army Omar N. Bradley has accepted, at my request, the active 
campaign chairmanship. 

There is great need this year for an aggressive campaign for financial 
support for the United Defense Services. We have moved from a fight- 
ing war to an armed peace, but the problem of sustaining the high morale 
of our defense forces is no less acute than during time of actual combat. 
If we are to maintain the United Defense Services — particularly those of 

318 



Dwight D. Eisenhower, 1954 *J 56 

the USO — on the desired high level, the understanding and support of 
the American people are vital. 

In the task of marshalling this support, we hope to enlist as leaders the 
official heads of State and Territorial Governments. Accordingly, I am 
asking each State and Territorial Governor to serve as Honorary Chair- 
man for the United Defense Fund in his State or Territory. I hope that 
it will be possible for you to accept this important assignment. 
Sincerely, 

Dwight D. Eisenhower 

56 ^ Statement by the President Upon Signing 
Bill Providing for Protection of Mexican Migrant 
Labor. March i6 ? 1954 

ON SIGNING this legislation, I wish to dispel any misconceptions which 
may exist regarding its purpose. The basic purpose is to enable this 
Government to give Mexican migrant labor the protection of our laws. 

Whenever United States employment is at such a level that Mexican 
workers are needed to supplement the United States labor force, and 
whenever they can be spared temporarily from Mexico, we of course 
welcome their valuable assistance to our farming community if they will 
cross the border legally. The problem of adequate control and protec- 
tion of Mexican workers in the United States has in recent years been the 
subject of searching analysis by the Governments of the United States 
and Mexico, working both independently and together. 

The two Governments, after more than four months of careful study 
and friendly negotiation — conducted in an atmosphere of mutual respect 
worthy of two sovereign neighbors — announced on March 10 that they 
had concluded a renewed and improved Migrant Labor Agreement. 
While neither Government assumes that this Agreement will prove to be 
the final answer to the whole complex problem, it provides necessary 
means for moving forward to more complete solutions. 

Unforeseeable future developments may some day lead the two Govern- 
ments to determine that formal agreement on this subject is no longer 
desirable but that appropriate action by each within its own jurisdiction 
is still essential. Authority has existed for a number of years for the 

3*9 



<| 56 Public Papers of the Presidents 

Attorney General to admit Mexican farm workers under whatever con- 
ditions he alone may establish, but because of the wording of applicable 
legislation there has not been adequate authority for United States gov- 
ernmental measures for protection and placement of the workers at any 
time there should not be an agreement with Mexico. The present law is 
precautionary in that it removes this disability and enables the Secretary 
of Labor to perform these functions of protecting and placing migrant 
workers which are so important to both United States and Mexican 
interests, at any time these services may be required. 

note: As enacted the bill (H.J. Res. 355) is Public Law 309, 83d Congress (68 
Stat. 28). 

57 ^ The President's News Conference of 
March 17, 1954. 

the president. I trust, ladies and gentlemen, everybody is wearing his 
proper emblem and done up in green this morning. 

Someone asked last week about the coffee investigation. We inquired, 
and the Chairman says that the investigation is coming along in good 
form, and they should have a report in the near future. 

There is one other little item, an Executive order that will be pub- 
lished, I guess this afternoon, having to do with this research and 
development. 

The only reason I mention it is because of the tremendous impression 
and impact it makes on me when I look at the sums that the Govern- 
ment spent for research and development only a matter of 12, 13 years 
ago, and what we are spending now. When you have an item of more 
than $2 billion in your budget, you have something that takes, of course, 
not only the finest scientific brains you can find in the United States to 
supervise and coordinate it, but it is really big business of a very large 
order; I believe in 1940, in all departments, that ran to $100 million. I 
think that Mr. Hagerty will have a statement to put out somewhere along 
about 4: 00 o'clock. 

I think that is all I have, so we will go to questions. 

Q. Merriman Smith, United Press: Mr. President, Representative 
Sterling Cole, the Chairman of the Joint Congressional Atomic Energy 



320 



Dwight D. Eisenhower, IQ54 ^ 57 

Commission, said last night that we now have a hydrogen bomb and can 
deliver it anywhere in the world. I wonder if you could discuss that? 

the president. No, I wouldn't want to discuss that. I hadn't seen 
the statement, and I don't recall what we have released. My embar- 
rassment at this moment is not that I wouldn't be glad to talk over 
certain of these things if I could recall how far we have gone in releasing 
information on the point, but when you say "can deliver anywhere in the 
world," why, of course, I guess that assumes that you have the right 
places from which to do it, and the machines, and so on. 

I would say that was a question not to be discussed until I was more 
sure where I am standing. 

Q. Mrs. May Craig, Maine Newspapers: Mr. President, he did put 
in the reservation if we have bases near enough. He did say we do not 
have nonstop planes that can take it there now. 

the president. I didn't read what he said; and I am sorry, Mrs. 
Craig, I don't believe I will discuss that this morning because I just 
don't think it is wise for me to do so until I check up. It is possible 
that I have said so much in the past that I would be perfectly justified 
in discussing it in some detail this morning. 

I will tell you what I will do; I will look up and see where we stand, 
and if it comes up at our next conference, why then, I will discuss it if 
I should do so. But I just don't want to go off the deep end here when 
I don't know where I'm standing. 

Q. Edward T. Folliard, Washington Post: Mr. President, I would 
like to ask you about a reply you made to a question last week. You 
had been asked about Indochina, about the possibility of a war growing 
out of an incident in Indochina, and you made this reply: 

"I will say this: there is going to be no involvement of America in 
war unless it is a result of the constitutional process that is placed upon 
Congress to declare it. Now, let us have that clear; and that is the 
answer." 

What I wanted to ask, Mr. President, is this: does that mean that if 
an aggression came, one, say, like the aggression in Korea in 1950, that 
you would hold up action until Congress debated the matter and then 
declared war? 

the president. Well, of course, you are trying to foresee every pos- 
sible condition that can arise. 



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<J 57 Public Papers of the Presidents 

Last week we were talking about Indochina, and I believe the question 
was concerning the possibility of one of our men, or one or two, getting 
killed, and what that would mean. I tried to reply very emphatically, 
and I still don't back away from the generalization I made in this 
general sense. But let us take an extreme case: suppose, while we are 
sitting here, right at this minute, there came a message flashed over the 
United States that coming up from the south somewhere were a great 
fleet of airplanes, and we had positive evidence that they were intent 
upon spreading destruction in the United States. 

Now, if there is anyone here or any citizen of the United States who 
would hold me guiltless if I said, "We will sit here and try to get in 
touch with Congress," well, then, I don't know who they are. 

That is an extreme case, and we must be careful not to make generali- 
zations just in terms of taking care of extremes. 

You can go right on down the line until you can have something where 
you say, "Well, the best interests of the United States are involved in 
this incident taken with someone else, but there is plenty of time to 
discuss it with Congress." 

But when you come down to the matter of self-preservation, quick 
reaction to a threat against your life, I believe there is a rule that applies 
to nations exactly as it does to the individuals : you don't call a policeman 
if your life is actually in danger; if you have nothing else to do but run, 
you at least try to do your best. 

I think that a rule of reason must apply here. But as far as trying 
to involve in any kind of circumstances the United States in a complete 
war — after all, war involves many things. There are all sorts of rela- 
tionships changed in the world. We are talking now about just defense 
against that sudden attack. 

Then, of course, you have the congressional. 

Q. Mr. Folliard: Mr. President, the argument was made in 1950 
that speed was very urgent, that it was necessary to move very quickly. 

the president. Well, I don't remember exactly about that. I re- 
member I was up in Canada, as a matter of fact, when it happened, 
and I came out of Canada. 

But if I recall, the first order was that there would be air support 
given to the South Koreans, the Republic of Korea troops; so there was 
plenty of time then to discuss what further action you would take, plenty 
of time to discuss it by Congress, I should think. 

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Dwight D. Eisenhower, ig$4 <I 57 

I am not trying to judge or to pass judgment on what happened. I 
am merely saying that there arise occasions in the handling of anything 
that is as complicated as a great country such as ours in its relationships 
with other countries, that you can't always predict exactly how you will 
handle a thing. 

We must, once in a while, trust to the judgment of humans and of 
people; that is why Government is so much dependent upon the people 
holding it. 

I am merely trying to say in my statements, I am against violating the 
Constitution. Actually, this thing was so well debated, you know, when 
the Constitution was passed, that it is implicit, I think, in our whole 
document that the President must act against sudden unexpected aggres- 
sion. They debated just exactly that point when they passed that 
provision that the Congress would declare war. 

Q. William P. Flythe, Hearst Newspapers: Mr. President, could you 
say anything about the status of the negotiations with Russia on the joint 
development of atomic energy for peaceful purposes? 

the president. No, I can't say anything about it because the con- 
versations that are going on are still on very much of a private basis. 
I can't say anything. 

Q. Ethel Payne, Defender Publications: Mr. President, Vice Presi- 
dent Nixon said on his return from Asia that every act of racial discrimi- 
nation or prejudice in the United States hurts America as much as an 
espionage agent who turns over a weapon to a foreign enemy. He 
added that every American citizen can contribute towards creating a 
better understanding of American ideas abroad by practicing and think- 
ing tolerance and respect for human rights every day of the year. We 
know also that you have taken the firm stand along these same lines. 

Do you not feel then, that the continuance on our statute books of 
the McCarran-Walter Act containing the national origins quota system, 
which discriminates against Asiatic people from southeastern Europe and 
from the West Indies, is harming our foreign policy, and will there be 
any proposal made to Congress on immigration which might alleviate 
these conditions? 

the president. As you know, you are bringing up a very broad, but 
it is a very vital question to us. 

Now, there has not been brought to me from the State Department 
this act and its immediate and direct effect upon our relationships with 

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<f 57 Public Papers of the Presidents 

other countries, so there have been no discussions between me and the 
State Department officials on the point. 

I do say that I believe as we come closer and closer to living by the 
principles enunciated in our founding documents, our own situation 
abroad is going to be better, and that is the kind of thing for which I 
strive. I am not going to be a bull in a china shop and destroy things. 
I am working for things; that is what I am trying to say. 

Q. Richard Harkness, National Broadcasting Company : If I may go 
back, sir, to the question raised by Mr. Folliard. Yesterday, Secretary 
of State Dulles said that he interpreted our NATO obligations and our 
obligations under our Latin-American pacts to retaliate in the event of 
an attack on one of our allies, and that there was no need for you to go 
to Congress for a declaration of war in such an event. On the other 
hand, thinking back, I discovered that the Senate Foreign Relations 
Committee, in approving the NATO pact in June 1949, this committee 
said that the treaty gave no authority to the Chief Executive that was 
not there in the absence of a treaty. Would you comment on Mr. 
Dulles' speech? 

the president. As a matter of fact, I don't think, by any manner 
of means, Mr. Dulles meant his remarks to say that I would have the 
authority to declare war. But there is a difference between an act of 
war and declaring war — I mean an act of violence. 

I come back again to the obvious right of self-protection, self-preserva- 
tion, if you are attacked and you have notice. What would you do if 
you suddenly were facing a gigantic Pearl Harbor? This thing isn't 
academic. When you get into that extreme, you are going to act, do 
whatever you think will save best the people of the United States, and 
would most quickly diminish the power of the other fellow to repeat it. 

Now, this whole thing within hours has to be before the Congress. 
They have to act on this. After all, you can't carry on a war without 
Congress. They have to appropriate the money, provide the means, 
the laws, and everything else. So Congress would have to come in on 
an emergency basis, if they were absent; or if they were here they would 
start meeting at night quickly. Things would have to move at the most 
tremendous speed. But I believe there is a great gulf between what 
the President would do to protect the United States and an actual 
declaration of war. 

Now, I could be mistaken, and I would not argue it. I would like 

324 



Dwight D. Eisenhower, 1954 ^ 57 

to discuss it with Foster Dulles but, having talked to him, I am sure 
that we are absolutely in agreement as to what we mean about it. 

Q. Richard L. Wilson, Cowles Publications: Mr. President, on this 
general subject there is another point involved. Mr. Dulles has outlined 
the policy of retaliation, and in some quarters that has been interpreted 
as meaning that if you have a local war or a local situation that the retalia- 
tion might be against Moscow or Peiping or some major point. Could you 
discuss that question of the local warlike situation? 

the president. Mr. Wilson, there is one thing I can tell you about 
war, and almost one only, and it is this : no war ever shows the characteris- 
tics that were expected; it is always different. What we are trying to say 
now is to express a generalization that would apply in an infinite variety 
of cases, under an infinite variety of provocations, and I just don't believe 
it is possible. 

I think that what has got to be decided is how deeply is the safety and 
security of America involved. 

We do know that there are weapons now in being that give more than 
ever to the attacker a tremendous advantage, the man who attacks by 
surprise. The element of surprise, always important in war, has been 
multiplied by the possibility of creating such widespread destruction 
quickly. Therefore, any President should be worse than impeached, he 
should be hanged, I should say, if he didn't do what all America would 
demand that he do to protect them in an emergency. 

But when it comes to saying that where on the fringe or the periphery 
of our interests and of wherever we may be, that any kind of an act on 
the part of the enemy would justify that kind of thing, that I wouldn't hold 
with for a moment; I don't think anybody else would. 

Q. Mr. Wilson: Well, the point has been made, sir, that the policy 
which Mr. Dulles outlined on January 12th would mean that we wouldn't 
take part in wars like the Korean War or the Indochinese War, but that if 
we did do anything to meet the threat of those local wars, it would be a 
direct attack upon the major aggressor at some point most desirable for us. 

the president. Well now, I will tell you: Foster Dulles, by no 
stretch of the imagination, ever meant to be so specific and exact in stating 
what we would do under different circumstances. He was showing the 
value to America to have a capability of doing certain things, what he 
believed that would be in the way of deterring an aggressor and preventing 
this dread possibility of war occurring. 

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<jf 57 Public Papers of the Presidents 

So no man, I don't care how brilliant he is, would undertake to say 
exactly what we would do under all that variety of circumstances. That 
is just nonsense. 

Q. Marvin L. Arrowsmith, Associated Press: Mr. President, I would 
like to get clear on one point. You are talking throughout here about the 
possibility of Presidential action in the case of an attack without going 
to Congress first? 

the president. I am talking about things you would have to do 
in 2 minutes, that is all. 

Q. Martin S. Hayden, Detroit News: Mr. President, since our last press 
conference, a Senate committee has released certain documents in which 
they allege that your Secretary of the Army made threats against the Senate 
committee, and offered to turn in the Navy and the Air Force if he could 
get a favor from the committee. I wanted to ask you just this, sir: as the 
man responsible for the Executive, are you at all disturbed about these 
reports and these allegations against this man in your administration? 

the president. Well, to say that a thing like that causes no concern 
to a Chief Executive would, of course, be ridiculous. After all, I have 
plead and plead for positive action to try to get our minds off these petty 
quarrels, negative results of calling each other names, and getting ahead 
with something that is good for the United States. I believe that with all 
my being, so every time that these things occur and upset people on the 
Hill and get them separated from the Executive, why, of course, it is 
serious. 

Now, when you ask me whether I believe Secretary Stevens, of course 
I do. If I didn't believe him, if I didn't have faith and confidence in him, 
he wouldn't be where he is; of course I believe in him. I don't say he 
can't be mistaken, I should make that clear. I don't know, there may be 
something that he has been misinformed on; but so far as his integrity 
and honesty are concerned I stand by him. 

Q. Kenneth M. Scheibel, Gannett News Service: Mr. President, a bill 
has been introduced in the House to change the St. Lawrence Seaway 
legislation which has been approved by the committee, substituting Fed- 
eral funds and putting in private capital to finance that project. Could 
you give us the administration viewpoint on the use of private capital 
rather than Federal? 

the president. I don't quite — you say substituting Federal funds? 

326 



Dwight D. Eisenhower, ig$4 <I 57 

Q. Mr. Scheibel : Substituting private capital for Federal money. 

the president. I haven't seen the exact language of any amendment 
proposed, but I would say this: I stand behind the bill as it came out 
of committee; that is what I should like to see enacted. 

Q. Robert G. Spivack, New York Post: Mr. President, there has been 
considerable speculation as to what the renewed fighting in Indochina 
means, and I wondered if, on the basis of any reports you have — well, 
some of the speculation goes along the lines that it is for the psychological 
effect on the Geneva conference; and others is that it means a renewal 
of Russian belligerency; and then there are some others. I wondered 
how you interpreted it. 

the president. No, I have no exact interpretation of those things, 
as none of us has. Strange and weird things are happening in this war. 

There was a movement, a very strong movement, you know, to the 
south and southwestward. Now, the spearheads of that force moved 
back to around this town, whose name I can never pronounce, but it is 
probably at the tip of your tongue, all of you. I assume that this force, 
having made all of this move down there, has now decided to see if 
they can accomplish something that they would consider a very great 
victory, if they could really defeat this French force that is holding this 
citadel and town. 

It wouldn't look like it was planned originally for that, because other- 
wise why waste all the time going on south. But they have come back. 
The fighting season, I believe, there will soon be drawing to a close 
because of the rains; so it looks to me like a battle just to try to overpower 
the French in that region. 

It may be something else; I haven't asked really my G-2 boys to give 
me their interpretation of the movement. 

Q. Sarah McClendon, El Paso Times: Sir, Congressman Rayburn 
and Congressman Cooper and Senator George undertook to answer you 
on taxes last night. I wonder if you would like to answer them on this 
point: they say the dividend features of this tax bill would give only 
6 families out of every 1,000 great benefits, and 80 percent of the people 
would not be benefited by the bill, and that those with incomes less than 
$5,000 would really suffer. 

the president. U.S. Steel is probably taken as the example of big 
business, owned by rich families. 

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<J 57 Public Papers of the Presidents 

There are 300,000 men working for U.S. Steel; there are 300,000 
stockholders in U.S. Steel. Fifty-six percent of those stockholders are 
men who draw less than $5,000 a year in their total incomes. Of that 
number, I think there is a total of 46 percent below the $4,500 mark, 
which is the average wage of the steel earners. 

There are more stockholders in U.S. Steel that are in the bracket 
$2,000 to $3,000 income than there are in any other thousand-dollar 
bracket in the whole list of stockholders. 

Now, to say that the bill that we have designed and worked on all 
these months is designed to help rich people, is an error. 

Q. Gould Lincoln, Washington Evening Star : Your speech on taxes 
has been interpreted in some quarters as meaning that you would veto 
the tax bill if it should contain the large exemptions proposed by some 
Congressmen. Would you tell us something about that? 

the president. As I have explained here before, it would be dan- 
gerous to say in advance what bills a President should veto and should 
not. As you know, the President does not have the power of the item 
veto; and he has to take the bill or reject it. I explained before, some- 
times you have to take very unpleasant features along with an otherwise 
good bill. However, any bill that in my opinion is going to wreck us 
or put us in an impossible situation, then I have got to sit down with it 
and decide whether the bad features are more important than the good. 
That is about all I can say. 

But I do say this: I notice some of the people that suddenly want to 
cut our income way down are the very people who just a very few 
months ago were saying "We will not increase the debt limit." Now, 
they must have some answer to that one. 

Q. Milton B. Freudenheim, Akron Beacon Journal: Mr. President, 
yesterday you were visited by your Commission to sell the Government's 
synthetic rubber plants. I wondered if you have any comment on the 
progress of that effort? 

the president. Only that they think they are making real progress. 
I believe there is a date set, before long, when this particular phase of ex- 
piration and all that comes to an end, and then start long negotiations. I 
know they believe that they are making real progress. 

Q. Robert J. Donovan, New York Herald Tribune: Sir, I had a ques- 
tion collateral to Mr. Hayden's on these investigations. There have been 

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Dwight D. Eisenhower, 1954 *J 57 

reports that all these embroilments have impaired morale in the Army and, 
particularly among officers. Have you had any reports, sir, on that; or, 
in your judgment, is that likely? 

the president. No, I haven't had any specific reports on it, but I 
will tell you : I would suspect that inside their hearts a lot of people hurt. 
The Army, and all the rest of the services, are rightfully very proud of the 
kind of service they have rendered to the United States. 

Now, when they find, sometimes rightly — well, as a matter of fact, it 
hurts more when it is rightly. When they are rightly criticized for the 
mistakes or errors or blunders of someone at the top of the services, they 
feel pretty low. When they are accused unjustly there is, I suppose you 
would say, a mixture of anger, resentment, and rather a great deal of 
sadness. 

They are people who are not articulate; they are not around making 
speeches in commercial clubs and all that sort of thing. They are people 
to whom I think we all owe a lot, and we ought to stand up and very 
carefully differentiate against anyone we think may have made a mistake 
and may have made a blunder, and these great armed services. 

There is a man for example, I see in the paper, who built a dog house. 
Well, he ought to live in it. I mean, he did it with Federal funds. 
[Laughter] 

Q. Edward T. Folliard, Washington Post : Mr. President, I would like 
to go back to the matter of Secretary Dulles and the doctrine of "mas- 
sive retaliation." As you told Mr. Wilson, you can't foresee the things 
you might do under varying circumstances. Perhaps we are confused, 
because we have been led to believe that Secretary Dulles had enunciated 
some new doctrine. Is it a new doctrine, sir? 

the president. Oh, no, not at all. 

Q. Mr. Folliard : Then there is nothing new about that? 

the president. After all, let's remember this: the American sailors 
tried to fight back at Pearl Harbor, didn't they? 

Q. Mr. Folliard: Yes. 

the president. Well, that was an act of war; it was an act of vio- 
lence, at least. We would have been amazed had they not done it. 

If you can imagine such things happening on a larger scale, who is the 
man who has to act quickly? The President of the United States, as the 
Commander in Chief of the Armed Forces; he has got to do something. 



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1$ 57 Public Papers of the Presidents 

But when it comes down to saying that merely because in some corner of 
the world our vital interests are hurt, we are going to decide in advance 
such great and extraordinary action that the Congress really has no way 
of backing up, that wouldn't be right. 

Q. Mr. Folliard : Last week, Mr. President, you said you didn't par- 
ticularly care for slogans, but we have had this, we have been hearing now 
about the "new look," the "new look" in defense, "new look" in foreign 
policy; is it true, sir, would we be wise to assume that nothing new has 
happened in the matter of military 

the president. Have you got 3 minutes to listen to a lecture? 

Q. Mr. Folliard : Yes, sir. [Laughter] 

the president. All right. "New look" : now, what do we mean? 
We mean this: we are not fighting with muzzle-loaders in any of the 
services. Every single day things change in this world, and any staff or 
any group of leaders doing his job is re-examining the world situation, 
the advances of science, the whole situation, geographic and otherwise, 
of our country and of others, to see what is it that we now need most 
to insure our security and our peaceful existence. 

You cannot possibly say that the kind of a unit and organization that 
I took to war or took over across the Channel in 1944 would have any 
usefulness today whatsoever. For example, you will recall we landed on 
June 6; we got out of that narrow little beachhead on about July 25. 
All right; behind that we built up two artificial harbors and we were 
landing over the beaches. What would two atomic bombs have done 
to the whole thing? 

So you just simply can't take, in warfare or in any contemplation of 
war or preparation for war, take old patterns and say that is by which 
we live. 

All that the "new look" is is an attempt by intelligent people to keep 
abreast of the times; and if you want to call your today's clothes the 
"new look" as compared to what Lincoln wore, all right, we are in the 
"new look." But I just don't like this expression because it doesn't 
mean much to me. 

I mean that we are striving our best to meet the grave responsibilities 
that are placed upon people whose job is to protect this country. Let 
me point out this: I hear people say "bigger army." Now, our most 
valued, our most costly asset is our young men. Let's don't use them 
any more than we have to. 

33° 



Dwight D. Eisenhower, ig§4 <f 57 

For 40 years I was in that Army, and I did one thing: study how can 
you get an infantry platoon out of battle. The most terrible job in war- 
fare is to be a second lieutenant leading a platoon when you are on the 
battlefield. 

If we can do anything to lessen that number — remember this: we are 
planning right now the greatest peacetime army we have ever held, one 
million men in time of peace. 

What are we talking about? It is, I think, there is too much hysteria. 
You know, the world is suffering from a multiplicity of fears. We fear 
the men in the Kremlin, we fear what they will do to our friends around 
them; we are fearing what unwise investigators will do to us here at home 
as they try to combat subversion or bribery or deceit within. We fear 
depression, we fear the loss of jobs. All of these, with their impact on 
the human mind makes us act almost hysterically, and you find hysterical 
reactions. 

We have got to look at each of those in its proper perspective, to 
understand what the whole sum total means. And remember this: the 
reason they are feared and bad is because there is a little element of 
truth in each, a little element of danger in each. That means that 
finally there is left a little residue that you can meet only by faith, a faith 
in the destiny of America; and that is what I believe is the answer. 

This "new look" — the "new look" is just our effort to solve in one 
field, that of the direct military attack, to produce the best results we 
can for the protection of America. To call it revolutionary or to act like 
it is something that just suddenly dropped down on us like a cloud out 
of the heaven, is just not true, just not true. 

Q. Roscoe Drummond, New York Herald Tribune: Mr. President, 
may I ask a quick question, and that is, do you think the time will come 
when we will have a press conference in which events do not require us 
to ask a question about unwise investigators? [Laughter] 

the president. I will tell you, Mr. Drummond, coming over this 
morning I said to one of my associates, I said, "You know, if one name 
comes up I am going to ask permission whether we couldn't have one 
press conference without this particular subject coming up." [Laughter] 

Q. Mrs. May Craig, Maine Newspapers: Mr. President, if you are 
able to talk to us at your next press conference about Mr. Cole and 
what he said on the hydrogen and atomic bombs, would you consider 

33i 



€[[ 57 Public Papers of the Presidents 

answering the question as to why we do not have planes which can 
deliver the hydrogen bomb from continental United States? 

the president. Of course, there are some of these questions that you 
had maybe get in the best engineers from Lockheed, and Consolidated 
and Boeing; ask those people, because there are certain limitations on 
every plane that is flying in the air today. 

However, I will look into the thing and see how much has been put 
in the public domain. I am perfectly ready to try to place in such 
perspective as I can, out of my experience before this group, such facts 
as are already in the public domain. But let me make perfectly clear, 
I am not going to release anything here that hasn't been released before. 

Q. Clark R. Mollenhoff, Des Moines Register and Tribune: Mr. 
President, has the White House given up in its effort to obtain the 
resignation of Colonel Johnson from the ICC? 

the president. What are you talking about? [Laughter] It is a 
question I know nothing about; I don't know the name; I don't know 
what you are talking about. 

Q, Mr. Mollenhoff: Is it correct, Mr. President, that you don't know 
that Mr. Adams has had Mr. Johnson at the White House on a couple 
of occasions to discuss that? 

the president. I suppose there are 500 people a day going in that 
office that I know nothing about. I don't know what you are talking 
about, so I don't have any answer whatsoever. 

Q. Robert G. Spivack, New York Post: Mr. President, on this ques- 
tion of fears, I think I can detect in all the questions that have been 
asked you here about the war question, there is one fear that seems to 
be involved, and that is the possibility of our involvement in the Indo- 
china war if our men who are over there are further attacked. I know 
this came up last week at the press conference. 

the president. And I gave my answer. You read it and you will 
find it is exact. 

Merriman Smith, United Press: Thank you, Mr. President. 

note: President Eisenhower's thirty-first o'clock on Wednesday morning, March 
news conference was held in the Execu- 17, 1954. In attendance: 167. 
tive Office Building from 10:31 to 11 :02 



332 



Dwight D. Eisenhower, 1954 ^ 58 

58 fl Veto of Bill for the Relief of Wilhelm 
Engelbert. March 17, 1954 

To the United States Senate: 

I return herewith, without my approval, S. 153, a bill "For the relief 
of Wilhelm Engelbert." 

This measure would grant the status of lawful permanent residence 
in the United States to Mr. Engelbert upon payment of the required 
visa fee. 

Mr. Engelbert is a native and citizen of Germany who was born in 
Dortmund, Westphalia, on July 27, 1905. He entered the United States 
illegally on December 31, 1926, as a deserting seaman, with the intention 
of remaining here permanently. 

Between 1926 and the outbreak of World War II in 1939, the alien 
did nothing to regularize his status in the United States. In fact, accord- 
ing to the record set forth in the Committees' reports upon this bill, his 
actions indicate clearly that he thought of himself as a German and 
showed his allegiance time and again as that of a German national. 

After the United States entered World War II, Mr. Engelbert was 
interned as an enemy alien. He remained an internee until July 1, 1948. 
In due course, a warrant for his deportation to Germany was issued in 
1943. This warrant, issued on grounds of illegal entry, was outstanding 
at the time of his release from alien enemy proceedings. Applications for 
reconsideration and reopening of the deportation hearings have been 
denied by the Board of Immigration Appeals. 

Although it appears that to a certain extent Mr. Engelbert's motives 
in becoming a member of the Nazi party, registering for service in the 
German army, equipping himself with German money to defray the cost 
of a trip to Germany, and other acts demonstrating allegiance to Germany, 
may have been dictated by a desire to assist his mother and to obtain legal 
entry into the United States, the fact remains that he did nothing to 
regularize his status for some twelve years. Furthermore, from 1939 until 
the end of World War II there is nothing in the record of this case to indi- 
cate that Mr. Engelbert showed real willingness to accept the responsi- 
bilities of a permanent resident of the United States. On the contrary, he 
sought repatriation to Germany during the war, and it was not until after 

333 



CJ 58 Public Papers of the Presidents 

victory had been assured in Europe in 1945 that he withdrew his appli- 
cation and requested adjustment of his immigration status. 

Under these circumstances, I see no basis for setting aside the require- 
ments of the immigration law. 

Dwight D. Eisenhower 

59 •! Veto of Bill for the Relief of the Estate of 
Mrs. Margareth Weigand. March 1 7, 1954 

To the United States Senate: 

I return herewith, without my approval, the enrolled bill (S. 502 ) , "For 
the relief of the estate of Mrs. Margareth Weigand." 

Kurt F. Weigand, the son of Margareth Weigand and a German 
citizen resident in the United States, was interned in 1942 as an enemy 
alien. Following his release from parole in 1945, he died in Fargo, North 
Dakota, by accidental drowning. Owing to his coverage under the Social 
Security Act, his mother, a resident and citizen of Germany, became en- 
titled to a lump sum death benefit award. The amount of the award 
was vested in the Attorney General by Vesting Order 17973, dated May 
31, 1 95 1 , which was issued in accordance with the provisions of the Trad- 
ing With the Enemy Act. This bill would provide for the return of the 
amount so vested to the estate of Mrs. Margareth Weigand. Mrs. Wei- 
gand was alive at the date of issuance of the vesting order. 

Section 39 of the Trading With the Enemy Act, as amended, in gen- 
eral prohibits the return of property or interests in property vested from 
nationals of Germany or Japan unless such nationals are eligible for 
return under the provisions of section 32 of the Act. Mrs. Weigand did 
not file a claim under section 32 for return of the amount vested, and 
the record contains no indication that she would have been eligible for 
return. Her ineligibility would disqualify her successors in interest. If 
ineligible, the enactment of the bill would authorize the transfer of the 
property to the beneficiaries of her estate contrary to existing general law. 

Moreover, even if these beneficiaries were eligible for the return of the 
property, this bill would bestow a preference on them by setting aside the 
claims procedures prescribed by general law. There is no apparent 
reason for singling out the beneficiaries for preferential treatment of any 
nature. 

334 



Dwight D. Eisenhower, IQ54 ^ 60 

The reasons urged in support of this measure would equally apply to 
the cases of thousands of other enemy nationals whose property in the 
United States was vested pursuant to the provisions of the Trading With 
the Enemy Act. 

Dwight D. Eisenhower 

60 ^ Statement by the President Upon Signing 
Executive Order Strengthening the Scientific 
Programs of the Federal Government, 
March ij, 1954 

SCIENCE has a vital role in our Nation's security and growth. During 
the past half-century, it has brought about a vast transformation in 
industry, in agriculture, in medicine, in transportation, and in com- 
munications. Military science has been revolutionized by technological 
development. The impact of science is increasingly felt in every field of 
public policy including foreign affairs. All this has been brought about 
through a combination of vision, initiative, business enterprise, a strong 
educational system, and the dedicated enthusiasm of the scientific 
community. 

The responsibilities of the Federal Government toward science have 
likewise changed greatly. In 1940, the Federal Government spent about 
one hundred million dollars in supporting research and development. The 
budget which I have just transmitted to the Congress calls for expendi- 
tures for these purposes in the next fiscal year of over two billion dollars. 
This is convincing evidence of the important role of science and tech- 
nology in our national affairs. 

This rapid expansion of Federal responsibility requires prudent admin- 
istration. More than half of all the investment in the Nation today for 
scientific research and development is being made by the Federal Gov- 
ernment. In large measure, these Federal funds are paid to industry and 
educational institutions for the conduct of research and development 
projects. Thus our Federal policies and practices regarding research and 
development are felt immediately and substantially by industry and our 
educational institutions. 

335 



<| 60 Public Papers of the Presidents 

More than ninety percent of this Federal support is presently going into 
applied research and development. This is the practical application of 
basic knowledge to a variety of products and devices. However, only a 
small fraction of the Federal funds is being used to stimulate and support 
the vital basic research which makes possible our practical scientific prog- 
ress. I believe strongly that this Nation must extend its support of research 
in basic science. 

While the Executive Order which I have signed today calls upon the 
National Science Foundation to carry out important responsibilities in 
regard to scientific research, it is also designed to strengthen the conduct 
and support of vital research and development in the several agencies 
where science is important in achieving their assigned missions. 

This order will, for the first time, set in motion important steps leading 
to a thorough and continuing review of the status of the Federal Govern- 
ment's activities in science, and thus enable the Government, together with 
industry, higher education, and the scientific community to move forward 
with assurance toward the achievement of the Nation's goals. 

I expect and believe that this order will clarify the position of the Gov- 
ernment toward the support and advancement of science in the Nation, 
and that it will contribute in a constructive sense to the development of 
our national policy in this important and critical area. 

note: Executive Order 1052 1, "Admin- lished in title 3 of the Code of Federal 
istration of Scientific Research by Agen- Regulations, 1954 Supplement, p. 49. 
cies of the Federal Government," is pub- 

61 ^ Citation Accompanying Medal of Honor 
Presented to Ola L. Mize. March 1 8, 1 954 

THE PRESIDENT of the United States of America, authorized by Act 
of Congress March 3, 1863 has awarded in the name of The Congress 
the Medal of Honor to 

SERGEANT FIRST CLASS (THEN SERGEANT) 
OLA L. MIZE, USA 

for conspicuous gallantry and intrepidity at the risk of his life above and 
beyond the call of duty in action with the enemy: 

Sergeant Mize, Infantry, United States Army, a member of Company 

336 



Dwight D. Eisenhower, IQ54 <I 61 

K, 15th Infantry Regiment, 3d Infantry Division, distinguished himself 
by conspicuous gallantry and outstanding courage above and beyond the 
call of duty in action against the enemy near Surang-ni, Korea, on 10-1 1 
June 1953. Company K was defending "Outpost Harry," a strategically 
valuable position, when the enemy launched a heavy attack. Learning 
that a wounded comrade lay helpless at a friendly listening post, Sergeant 
Mize with a medical aid man moved through intense enemy fire and 
rescued him. On returning to his position Sergeant Mize organized an 
effective defense and inflicted heavy casualties against the continuously 
and fiercely attacking enemy. During this period he was knocked down 
three times by the concussion of artillery and grenade blasts but each 
time he dauntlessly arose and resumed the violent combat. When enemy 
onslaughts ceased temporarily with the enemy in possession of friendly 
emplacements in the outpost area, he led his few remaining men from 
bunker to bunker, firing into the apertures, throwing grenades at the 
entrenched foe, and effectively neutralizing their positions. When an 
enemy soldier suddenly stepped from cover prepared to fire at one of 
Sergeant Mize's men, Sergeant Mize killed him saving the life of his 
fellow-soldier. After rejoining the platoon, he observed that a friendly 
machine gun had been overrun. Unhesitatingly, he fought his way to 
the position, single-handedly killing ten of the enemy and dispersing the 
remainder. Fighting his way back to his command post he took a posi- 
tion to protect several wounded soldiers. Later, securing a radio, he 
directed friendly artillery fire upon the attacking enemy's routes of ap- 
proach and at dawn he helped regroup for a counterattack which drove 
the enemy from the outpost. Sergeant Mize's valorous conduct and 
unflinching courage reflect lasting glory upon himself and uphold the 
noble traditions of the military service. 

Dwight D. Eisenhower 

note: The President presented the medal at 11:30 a.m. on September 7, 1954, in 
to Sergeant Mize at Lowry Air Force Base the presence of relatives and friends. 



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<$ 62 Public Papers of the Presidents 

62 *I Statement by the President Upon 
Approving Recommendations for the Development 
of the Upper Colorado River Basin. 
March 20, 1954 

I HAVE TODAY approved recommendations for the development of 
the Upper Colorado River Basin. 

The general plan upon which these recommendations are based has 
been prepared by the Secretary of the Interior. The Secretary's recom- 
mendations have been reviewed by the Bureau of the Budget. Legislation 
embodying the Administration's recommendations is being prepared for 
introduction in the Congress. 

This is a comprehensive, well-planned development of a river basin. 
The close Federal-State cooperation upon which the Secretary's plan is 
based also carries out this Administration's approach to water resource 
development. 

The development will conserve water, enabling the region to increase 
supplies for municipal uses, industrial development, and irrigation. It 
will develop much-needed electric power. 

The development calls for sound financing. The legislation now being 
drafted will set up a fund for the entire project so that it will be 
constructed and paid for as a basin program. 

Construction of the Echo Park and Glen Canyon dams, two of the 
large projects in the basin plan, is recommended. These dams are key 
units strategically located to provide the necessary storage of water to 
make the plan work at its maximum efficiency. 

The legislation being drafted will authorize a number of projects which 
will put to use the waters of the Upper Colorado. This authorization 
will become effective following further consideration by the Secretary 
of the Interior, with the assistance of the Secretary of Agriculture, of the 
relation of these projects to the wise use and sound development of the 
basin. 

I am deferring my recommendation on the Shiprock unit of the 
Navajo project until the Secretary has completed his study. 

I hope the Congress will give early consideration to enactment of the 
Administration's legislative proposal. I firmly believe development of 

33B 



Dwight D. Eisenhower, ig^4 <J 63 

the Upper Colorado River Basin, in accordance with its provisions, is in 
the national interest. 

note: The recommendations approved papers, are printed in Senate Report 
by the President, together with related 1983 (83d Gong., 2d sess.). 

63 ^ The President's News Conference of 
March 24, 1954. 

the president. I have nothing of my own this morning, and we will 
go right to questions. 

Q. Merriman Smith, United Press: Mr. President, the Republican 
leadership has said that Senator McCarthy should not participate in an 
investigation in which he is involved; yet the Senator insists on the right 
of cross-examination in an investigation of the dispute between his com- 
mittee and the Army. What are your feelings, sir, in this matter? 

the president. Well, I have no feelings at all about a particular 
situation or technicality of which I know nothing. 

I am perfectly ready to put myself on record flatly, as I have before, 
that in America, if a man is a party to a dispute, directly or indirectly, he 
does not sit in judgment on his own case, and I don't believe that any 
leadership can escape responsibility for carrying on that tradition and 
that practice. 

Q. Richard Harkness, NBC Radio : May we quote you on that? 

the president. No. You have the regular — I don't mind. You 
can go and see Mr. Hagerty as usual on that particular point; but if 
every time I say something I am to be quoted, why, I will come over here 
with written answers. 

Q. Merriman Smith, United Press: Mr. President, can we have Mr. 
Romagna [official reporter] read back the last part of your reply — some 
of us missed it — without asking for a direct quotation? 

THE PRESIDENT. OK. 

Q. S. Douglass Cater, Jr., The Reporter Magazine: Mr. President, last 
year you urged passage of the Refugee Relief Act, but to date only a hand- 
ful of people have been admitted under that. Do you have any knowledge 
as to whether the difficulty lies in the legislation, or the administration, or 
where it does lie? 

the president. Well, I haven't any late and detailed report on it. 

339 



<J 63 Public Papers of the Presidents 

What I do have is a statement that they have had great difficulty in trying 
to streamline procedures in accordance with the prescriptions of the act 
itself, as passed, and to get the thing rolling. 

It has been reported to me they are striving to do so. I would hope that 
this logjam loosens up very shortly. I will look it up again. 

Q. John Herling, Editors Syndicate : I believe in your press conference 
of February 1 7th, in reply to a question on the economic situation, you 
referred to March as being sort of the key month as to action by the Gov- 
ernment in regard to rising unemployment, and if unemployment con- 
tinued to rise at that time then action other than has been pursued would 
be called for. Now, unemployment has risen, sir, and I wonder whether 
there is an administration policy that has been projected at this time? 

the president. I don't recall the exact words. I implied and indi- 
cated that March would normally be a rather significant month, that is, a 
month when normally, seasonally, there is an upturn. I don't believe I 
said that instantly there would be programs set, I said there would be a 
new examination of the problem and it would cause real concern. 

It is difficult to talk about this question without taking a little bit more 
time than just a "yes" or "no," ladies and gentlemen. 

Coming out of a war economy, going back into a peacetime economy, 
has traditionally caused, in every country, very, very marked fluctuations, 
sometimes marked by great inflation, lowered productivity, all that sort of 
thing. 

What has been the task that has really been going on for quite a while, 
but especially since last July, has been trying to make this transition, with 
a cutback on all kinds of war production, ammunition and everything else 
being used in Korea, in such a way as to cause the least damage. 

There has been, of course, a continuous rise in unemployment since 
that time. The figures for March are, of course, not all in, and they 
won't be in until sometime in early April. 

A contributing cause here, they tell me, although I am not so sure of 
the effect of this one, is that Easter being late, the ladies have not been 
buying as rapidly as they normally do this time of year and all kinds of 
qualifying conditions enter into this thing. 

The only thing that I am sure of, up to this moment — we study this 
every single day of our lives, there is a conference in my office on this 
subject every single day — there is nothing that has developed that would 

340 



Dwight D. Eisenhower, IQ54 <J 63 

call for a slambang emergency program being applied at this moment. 
That doesn't mean that we are not watching everything. 

Many things have been done. There is easier credit, there is cheaper 
money, there are things of that kind; there are housing and building 
programs before the Congress which should be helpful. 

There is every kind of thing constantly under consideration that we 
can think of that would be helpful. But we just don't believe this is the 
time to move on an emergency basis; because if we do, we could easily 
distort the picture very badly. 

Q. Daniel S. Schorr, Columbia Broadcasting System: Mr. President, 
are you satisfied with the progress of your legislative program through 
Congress? 

the president. I think there have been several times when we have 
discussed exactly what this word "satisfied" means. 

I truly believe that the rounded program sent to Congress represents 
a crying need in the United States. I believe it will insure its progress; 
I believe it will insure an upturn in the economy; I believe it will insure 
greater prosperity and happiness for all of us; distribution of inescapable 
burdens and a stronger America, which is, after all, the ultimate goal. 

Now, the longer we put that off, to my mind, the more we are failing 
to take advantage of our opportunities to do what we should. 

Q. William P. Flythe, Jr., Hearst Newspapers: Would you care to 
say anything, sir, about the conference at Geneva with reference to Indo- 
china and Communist China? That is a large order. 

the president. Of course, you are asking a question that we can 
take the rest of the time on. I would say only a very few things. 

One, I don't believe that it is necessary to argue the importance of 
all this great southeast Asian area and the southwest Pacific, its impor- 
tance to the United States and to the free world. Indonesia, our friends 
in Burma and Siam and Malaya, the Philippines, all in that region, it is 
of the most transcendent importance. 

This fighting going on in Indochina, no matter how it started, has very 
manifestly become again one of the battlegrounds of people that want to 
live their own lives against this encroachment of Communist aggression; 
that is what it is. 

With respect to Communist China, at this moment, in the forthcoming 
conference, I haven't much to say. I have expressed certain of the rea- 



51986—60 25 



341 



CJI 63 Public Papers of the Presidents 

sons why we took the attitude that we do toward Red China, and until 
those conditions have changed, there is no change in our attitude or our 
situation. 

Q. Pat Monroe, Salt Lake City Deseret News : Mr. President, on De- 
cember 8, before the U.N., in your Operation Candid Speech, you said 
that the free people of the world must be armed with the significant facts, 
that is, atomic facts, of today's existence, and yet a lot of us have found 
what has been called the uranium curtain of secrecy at the Atomic 
Energy Commission closing ever tighter. 

My specific question concerns the possible resumption of press con- 
ferences there at the Atomic Energy Commission, if and when. 

the president. Well, I will tell you, I wouldn't give you a positive 
answer that that is a good thing to do. 

I do believe this, that entering the atomic age, you people have legiti- 
mate questions — and all America and possibly the world — affecting this 
whole development. You have a right to ask them at places, specifically 
to me or the White House or other places, when information can be 
given without definitely jeopardizing the security of the United States. 

I shall try, after Admiral Strauss comes back from the Pacific, to review 
this whole question with him again and determine, if we can, what is the 
scope or the limits of the things of which I can talk. I promised this 
last week, not realizing, I guess, at that moment that he was a long ways 
from my side. I want to put off any further discussion until he comes 
back. 

Q. Mrs. May Craig, Maine Newspapers: Mr. President, in relation 
to that, my question to you last week was aimed at clarifying your position 
on the emphasis to be put on bombers based in the United States rather 
than depend on overseas bases which might or might not be available 
to us in war. 

the president. Now, Mrs. Craig, you are talking about something 
that I won't talk about. I am not going to say what I consider, except 
I do consider myself a military man in that respect, and my lifetime was 
spent in it. I am not going to try to give an evaluation of the one kind 
of a base as against another at this moment. I don't think it would be 
wise at all. 

Q. Ethel Payne, Defender Publications: Mr. President, since you have 
said that you are in favor of using Federal authority, where it is proper 
to do so, in the program of ending racial discrimination, will you urge 

342 



Dwight D. Eisenhower, 1954 f$ 63 

the Congress to act favorably on S. 262, the bill to prohibit segregation 
in interstate travel? 

the president. I will take a look. I haven't heard of the bill; I will 
take a look, because I am not sure. I would have to consult the 
Attorney General and see what he says about our authority there. 

Q. Joseph C. Harsch, Christian Science Monitor: Mr. President, 
would you give us a soldier's appreciation of the battle at Dien Bien Phu? 

the president. Well, it is extremely difficult unless you are on the 
spot. 

I have talked to a number of people. Frankly, the odds that are just 
given in numbers, the comparative odds, the attacker against the de- 
fender — if you had a well-chosen defensive position, I would say the odds 
were all in favor of the defender. 

Now, I suppose most of you have looked at the map, and you know 
this position is in the valley astride a river; that it is not too long. With 
some 2 1 battalions, I believe it is, they are trying to defend a position 
that is completely dominated by the observation that the attackers have 
on the two ridges, the ridges on the side of the river. So that makes it 
anything but pleasant. 

Some of you here were unquestionably at Anzio — that was after I 
left Italy, but I have gone back to that battleground — and there all the 
Allied Forces were in an almost impossible position. 

They were lying on the plain, and the enemy had all of the observation 
positions to place all the artillery where they wanted to, and it is a terrible 
thing on morale. 

So, I think one of the things, one of the intangibles, that you would 
have to be present to evaluate is what is the effect of this continuing 
situation where they are getting shot at all the time and don't believe 
they are shooting back effectually; what is that effect on morale? 

Now, there is no need to tell you people that followed battles in the 
war, morale is everything. So long as a unit thinks it can win, it can 
win; but, of course, many things go into making it up. 

I would say right now, as I see it, there is no reason for good troops 
to despair of coming out of the thing all right. Now, it is not an easy 
one. 

By the way, I asked one specific question you might be interested in. 
I find there is a colonel commanding the unit, and he was put there 
because apparently he is a very brilliant commander. I said, "Well, if 

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<| 63 Public Papers of the Presidents 

I were the commander in the field, and I had a colonel commanding 
that thing, he would have been a general the day before yesterday." 
[Laughter] In any event, there is apparently a very brilliant, fine, young 
soldier commanding the place, and doing a gallant job, and they did 
promise to put my remark on his record after it came out. 

Q. Nat S. Finney, Buffalo Evening News: Mr. President, there has 
been a good deal of complaint about the statistics of unemployment, 
complaint about confusion in the two series. Do you have any plans 
to do anything about that? 

the president. Well, they are doing something about it. They 
have a group that is checking every single new installment of statistics 
to try to figure out what these things mean, and are going to adopt the 
one that is the most accurate — I think that is the broader one. But 
to get adjustment between the two, it is going on right along. 

I think it is unfortunate that the thing happened to be put into effect 
when we did have a rise, and when we are also rightfully concerned 
with rising unemployment and, therefore, it puts an element of con- 
fusion in the thing that wouldn't normally be there. But they are 
working as hard as they can to get it straightened out and to produce 
the honest facts, that I assure you. No one is trying to be clever about 
this, but to get the straightforward facts. 

Q. Frank van der Linden, Nashville Banner: Mr. President, a week 
ago you had a conference here with Mr. Harry Carbaugh of Chatta- 
nooga, and he came out later and said you discussed the possibility of 
making him the Chairman of TVA. A statement came through Mr. 
Hagerty's office, said he could not serve the full time; and some of the 
Democrats in the Senate have said that that indicates maybe he won't 
get the job, that it is a face-saver, they say. I wonder if you have a 
comment on that? 

the president. Face-saver? 

Q. Mr. van der Linden : Yes. They say that he was just being given 
a nice welcome treatment here, and that he will be brushed off — that is 
the Democrat view on it. 

the president. I think that they flatly said that I had no decision 
to announce because I had reached none, and that is the absolute truth. 

Now, the other two items that you heard, so far as I know, are also 
the absolute truth. 



344 



Dwight D. Eisenhower, ig$4 ^ 63 

Q. Donald R. Larrabee, New Bedford Standard-Times: Mr. Presi- 
dent, there has been criticism in some quarters of the fact that this ad- 
ministration has retained a 1948 Presidential directive which denies 
loyalty and security data to congressional committees. I would like to 
ask you if you would care to comment on the charge that this has ham- 
pered the work of congressional committees, and should be revoked or 
revised? 

the president. You start off with a statement of which I am not 
presently informed. 

There are certain types of files that will never be released by the execu- 
tive departments. The FBI files are inviolate, and are going to remain 
so as long as I am here. 

Now, if there are other kinds of files — they tell me they do forward 
certain summaries and factual information, as long as it is fact; I don't 
know exactly how it is done — it is a question you might look up and 
provide the answer for, Mr. Hagerty. I don't know enough about it to 
talk about it further. 

Q. Paul Scott Rankine, Reuters- Australian Associated Press: Mr. 
President, there have been some expressions of concern overseas that 
your policy of instant retaliation against aggression, that it might not 
involve consultation between the United States and its allies, either in 
advance of or during the kind of emergency which you discussed with 
us last week. I wondered if you could clarify the situation? 

the president. Well, I explained to you last week one type of emer- 
gency in which a commander in chief would have no recourse, and that 
was when you were directly under the kind of thing, in a glorified way, 
that happened at Pearl Harbor. But I believe that the Prime Minister 
answered one part of your question very accurately, yesterday, when he 
said we had all the arrangements for instant consultation that could 
possibly be made and, particularly, with respect to any use of the bases 
there. With other of our friends in the North Atlantic Alliance, par- 
ticularly those we work very close with — Canada, for example — we are 
always in consultation. 

Q. Charles J. Greene, Jr., New York Daily News: Returning, sir, to 
your first question about a man sitting in judgment upon himself, 
McCarthy is insisting as late as yesterday afternoon, that he no longer 
wishes to sit in judgment, that he has withdrawn from any voting on 

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4J 63 Public Papers of the Presidents 

the committee, that all he wants and must have is the right to cross- 
examine the witnesses. Will you comment on that? 

the president. No. Many times, I told you, I don't know enough 
about the specific case to comment, even if I should. There are certain 
things that the leadership and the people down there cannot escape re- 
sponsibility for, and I am not going to try to prejudice the case by 
commenting on details of which I know nothing. I state my principle 
on which I stand. 

Q. Marvin Arrowsmith, Associated Press: We have been asked 
whether you care to comment on the Senate rejection yesterday of the 
resolution to unseat Senator Chavez. It was turned down, as you 
probably saw. 

the president. I have no comment whatsoever. I would say again 
you are talking about something that certainly is strictly the Senate's 
business. 

Q. Sarah McClendon, Galveston News-Tribune: Sir, you have been 
asked, I believe, to keep the Texas City tin smelter open. That request 
was made by Senator Johnson and Congressman Thompson; and in 
view of the situation in Indochina, I wonder if you have made up your 
mind to reverse the budget and keep it open? 

the president. No, I haven't made up my mind about it. As a 
matter of fact, the question has been reopened for study, but I have not 
made up my mind to keep it open. 

Q. George E. Herman, CBS Radio: Mr. Hagerty told us yesterday 
that you would not be commenting on the atomic energy test, but I 
wanted to ask you a question on the fringe, if you have no objection. 
Some anti-American newspapers in Japan and other countries in the 
Far East, have been seizing upon these cases of radioactive poisoning to 
make some very strong anti-American propaganda. I wonder if you 
would care to give us some statement of policy of the Government of its 
responsibility towards the rest of the world in these tests? 

the president. It is quite clear that this time something must have 
happened that we have never experienced before, and must have sur- 
prised and astonished the scientists. Very properly, the United States 
has to take precautions that never occurred to them before. 

Now, in the meantime, I know nothing about the details of this case. 
It is one of the things that Admiral Strauss is looking up, but it has been 

346 



Dwight D. Eisenhower, ig$4 ffr 63 

reported to me that the reports were far more serious than the actual 
results justified. 

Q. Robert G. Spivack, New York Post: Mr. President, there have 
been stories in papers around the country by various Republican leaders 
expressing the hope that you will actively take part in the 1954 congres- 
sional campaign, and that you will be visiting their communities or 
making a speaking tour. Have you any thoughts on that? 

the president. I have expressed my thoughts before this body time 
and again, and I am sure that there is no one here that is really mistaken 
about what I mean and what I have said. If there is, you can bring the 
question up next week. 

Q. Alan S. Emory, Watertown Daily Times: Mr. President, this week 
the House Rules Committee, after beginning action on the St. Lawrence 
Seaway project, decided to postpone until April first additional hearings 
and, possibly, a vote. This action was taken with the presence before the 
committee of both the leading proponents and opponents of the project 
from the House Public Works Committee, and the postponement has re- 
sulted in some charges of stalling even by your own backers who consider 
this a major part of the administration program. I wonder, sir, if you 
intend to ask the House leadership to expedite action on the Seaway? 

the president. So far as I know, they have got it scheduled for its 
place in their program, and I am not going to ask them to upset a whole 
program of work. 

Frankly, I think the House has been doing an awfully good job. No 
one has asked me about it, but if you would like to ask my opinion about 
the tax fight the other day, why, I would say I think they did a magnificent 
job. They did it for the good of the country and, I would say, with a 
minimum of concern for their own particular welfare or ambitions. 

They did it because they thought it was a fine program. Of course, we 
had some few, thank goodness, Democrats who felt the same way about 
it; but I think the House has been doing a fine job. I can certainly ask 
when they expect this to come out, but I have the minimum of criticism 
for the group. 

Q. David Sentner, Hearst Newspapers : Mr. President, in your promise 
to review the atomic weapons public relations problem, will that include 
the possibility of having members of the press invited to any future hydro- 
gen bomb test? 

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Cfl 63 Public Papers of the Presidents 

the president. Well, I will ask. I hadn't thought of it. I think 
rather than comment on it right now, I will take it up, I will say that. So 
the discussions will include that. 

Q. Carroll H. Kenworthy, United Press: Mr. President, when you 
were talking about the French Colonel at Dien Bien Phu a few minutes 
ago, did you say you recommended that to the French General who saw 
you the other day? 

the president. Well, I said I recommended it; I don't know whether 
I recommended it to 

Q. Mr. Kenworthy : You spoke to the French General? 

the president. I said I thought it would be a good thing to do. 

Q. Mr. Kenworthy : And you told it to the Frenchman? 

the president. I told it to a Frenchman who promised it would 
be put on his record. 

Q. Ray L. Scherer, NBC Radio: General MacArthur said the other 
day you called him down here to get his views on certain subjects. Could 
you tell us any more about that visit with the General? 

the president. Well, I didn't see General MacArthur's statement 
afterward, but he and I have been very closely associated since 1930, and 
I have never found any talk with him profitless. We talked about the 
general conditions in the Far East, where he spent so many years of his 
life. 

We talked over general situations, implications of various things that 
we saw in our reports, and it was not intended to reach definitive con- 
clusions or plans or anything else. It was merely an exchange of views 
from an old friend; that is what it was. 

Q. Lloyd Schwartz, Fairchild Publications : Mr. President, a Supreme 
Court decision recently appears to have knocked out about sixteen of 
these State right-to-work laws which provide for use of injunction against 
picketing and boycotts and the like. I wanted to ask, have you definitely 
abandoned any plan to send up a message on this to Congress to correct 
this? 

the president. There has been no definite decision on it. As a 
matter of fact, I didn't know about the Supreme Court decision you are 
speaking of this morning. 

Q. Robert J. Donovan, New York Herald Tribune : Sir, your compli- 
ment to the House naturally begs the question on a certain other branch 
on Capitol Hill. [Laughter] 

348 



Dwight D. Eisenhower, ig$4 <J 64 

the president. Then I am glad you brought it up; I would like to 
make it clear. After all, all of us know that the rules of the Senate differ 
from those of the House; possibly because the House is such a large body, 
they have to have firmer disciplinary control. 

But in any event, let us remember this also, that all revenue bills have 
to start in the House. There the extensive hearings are held, which 
often helps to shortcut the work in the other House. 

I was asked a question about the House Rules Committee, I wasn't 
asked about the Senate. Now, they have to have a little more time, as 
we all know. 

Q. Joseph Chiang, Chinese News Service: Mr. President, General- 
issimo Chiang Kai-shek once again was elected by the people, the free 
people, of China as President of the Republic of China. Do you have 
any comment to that, sir? 

the president. Well, I don't think I have any comments. As you 
know, I know the Generalissimo, and I like him. 

When I go there, or when I have been out in that region, I like to see 
him; but I don't know anything at all about what I should say or what 
comment you would expect from me now. I really don't. 

Merriman Smith, United Press: Thank you, Mr. President. 

note: President Eisenhower's thirty- 10:58 o'clock on Wednesday morning, 
second news conference was held in the March 24, 1954. In attendance: 212. 
Executive Office Building from 10:31 to 

64 1$ Statement by the President Upon Signing 
Bill To Amend the Natural Gas Act. 
March 27, 1954 

I HAVE TODAY approved H.R. 5976, a bill "To amend section 1 of 
the Natural Gas Act." 

This measure preserves the authority of the Federal Power Commis- 
sion to regulate the rates which may be charged for natural gas moving 
in interstate commerce up to the time it reaches the State in which it 
will be wholly consumed. At the same time the bill makes it possible to 
remove from Federal regulation persons and facilities receiving gas 
within or at the boundary of a State if all of the natural gas so received 



51986—60 26 



349 



C| 64 Public Papers of the Presidents 

is to be used within that State. The bill contains a Congressional decla- 
ration that these matters are primarily of local concern and subject to 
regulation by the several States. The removal is operative only if the 
States exercise and enforce jurisdiction over rates and services. 

I have approved this bill because of my conviction that the interests 
of the individual citizen will be better protected when they remain under 
State and local control than when they are regulated or controlled by 
the Federal Government. I shall support State regulation of functions 
and matters which are primarily of local concern whenever possible and 
when not contrary to the national interest. 

The State regulation provided in H.R. 5976 presents a new challenge 
to the State governments and their regulatory commissions. This 
measure places the responsibility for protection of consumer interests for 
intra-state matters squarely where it belongs — in the hands of the people 
of the States and their duly elected or appointed officials. I believe 
effective and competent discharge of that responsibility will result. 

If experience should demonstrate that the Act creates a larger area of 
regulation by the States than they will be able to handle effectively in the 
public interest, I shall promptly recommend that the Congress take 
whatever remedial action appears to be necessary. 

note: As enacted, H.R. 5976 is Public Law 323, 83d Congress (68 Stat. 36). 

65 ^ Letter Accepting Resignation of Joseph M. 
Dodge as Director of the Bureau of the Budget. 
March 27, 1954 

[ Released March 27, 1954. Dated March 2, 1954 ] 
Dear Joe: 

I must, of course, respect your wish to leave governmental service after 
so many years devoted to it. I cannot in conscience ask you to recon- 
sider in view of the reasons you give for your decision. But I assure you 
that it is only with the greatest reluctance that I accept your resignation 
as Director of the Bureau of the Budget. 

Your services during these past fourteen months in office have been 
invaluable to the country. Your competence and knowledge in an ex- 

350 



Dwight D. Eisenhower, i$$4 *J 66 

ceedingly difficult field have immeasurably helped solve the gigantic 
fiscal and management problems that have faced this Administration. 
On the more personal side, I shall sorely miss your advice, counsel and 
your friendly helpfulness. In fact, I have every intention of imposing 
upon you from time to time to give me your thoughts and opinions on 
some of the knotty questions that will continue to arise. 

In thinking back over the governmental positions you have been called 
to fill since the beginning of World War II, I am struck by the fact 
that not only has each been an important one but most of the assign- 
ments have been almost on an emergency basis. In each your reputation 
for efficiency and dedication to the public good has continued to grow. 
As a consequence, you will leave behind you in the government service 
a host of admiring friends; I know that each of them would join me 
now in wishing for you the greatest of happiness and success in the years 
to come. 

With warm personal regard, 
As ever, 

Dwight D. Eisenhower 

note: In his letter of resignation Mr. after the 1955 budget was presented to the 

Dodge referred to his work in revising the Congress. His letter was released with 

original 1954 budget and to his intention, the President's reply, 
known to the President, of resigning soon 

66 *\ Statement by the President on the 
Ratification by Germany of Treaties Relating to 
the Proposed European Defense Community. 
March 29, 1954 

PRESIDENT HEUSS of the Federal Republic of Germany has signed 
the treaty establishing the European Defense Community and the Con- 
vention on Relations with the Federal Republic, thus completing final 
ratification of these treaties by the Federal Republic. 

I am gratified that one more country has now completed all phases 
of ratification of these treaties which are designed to assure a stronger 
European community and thereby contribute to the establishment of 
lasting peace. 

35i 



<I 67 Public Papers of the Presidents 

67 ^ Special Message to the Congress on Foreign 
Economic Policy. March 30, 1954 

To the Congress of the United States: 

I submit herewith for the consideration of the Congress recommenda- 
tions concerning the foreign economic policy of the United States. 

Due to the urgency and significance of our problems in this area, I 
previously recommended, and the Congress approved, the establishment 
of the Commission on Foreign Economic Policy. Its membership, con- 
sisting of seventeen elected officials and private citizens, was drawn from 
all parts of the country and represented diverse points of view. The 
Commission's report, prepared in the American tradition of full debate 
and vigorous dissent, has been carefully reviewed by the various Execu- 
tive Departments of the Government and forms the basis for the program 
I submit in this message. 

Before the Commission began its deliberations I said to its members, 
"I commend to you an attitude both realistic and bold. Above all, I 
urge you to follow one guiding principle: What is best in the national 
interest." 

The national interest in the field of foreign economic policy is clear. 
It is to obtain, in a manner that is consistent with our national security 
and profitable and equitable for all, the highest possible level of trade and 
the most efficient use of capital and resources. That this would also 
strengthen our military allies adds urgency. Their strength is of critical 
importance to the security of our country. 

Great mutual advantages to buyer and seller, to producer and con- 
sumer, to investor and to the community where investment is made, accrue 
from high levels of trade and investment. They accrue no less in trade 
from nation to nation than in trade from community to community within 
a single country. The internal strength of the American economy has 
evolved from such a system of mutual advantage. 

In the press of other problems and in the haste to meet emergencies, 
this nation — and many other nations of the free world — have all too often 
lost sight of this central fact. World-wide depression and wars, inflation 
and resultant economic dislocations, have left a sorry heritage: a patch- 
work of temporary expedients and a host of restrictions, rigidities, inter- 
ferences and barriers which seriously inhibit the expansion of interna- 

352 



Dwight D. Eisenhower, 1954 <J 67 

tional trade. Thus are impeded the very forces which make for increased 
production, employment and incomes. 

The tasks of repairing the physical damage caused by the catastrophe 
of war have been substantially achieved. The creation of an adequate 
system of defense for the free world is well advanced. Most of the coun- 
tries which suffered the ravages of war have made remarkable headway 
towards financial stability and increased production. Their own efforts 
have been greatly aided by our assistance, and yet, despite this recovery, 
we and other free nations are still severely limited by the persistence of 
uneconomic, man-made barriers to mutual trade and the flow of funds 
among us. 

Together we and our friends abroad must work at the task of lowering 
the unjustifiable barriers — not all at once but gradually and with full 
regard for our own interests. In this effort, the United States must take 
the initiative and, in doing so, make clear to the rest of the world that we 
expect them to follow our lead. 

Many foreign restrictions have been imposed as a consequence of the 
so-called "dollar gap." This phrase has become the symbol of the failure 
of the free world to find a lasting solution to the imbalance of inter- 
national payments. We should no longer fill it by major grants to enable 
other nations to secure what they need but cannot buy. Our aim must 
not be to fill the dollar gap, but rather to help close it. Our best interest 
dictates that the dollar gap be closed by raising the level of trade and 
investment. 

The United States stands ready and able to produce and sell more than 
the rest of the world can buy from us. The inability of many foreign 
countries to buy our goods in the volume we would like to sell does not 
arise from any lack of desire for these goods. Such is far from the case. 
Instead it arises out of an inability of these nations to pay — in dollars — 
for the volume we have to sell. 

Dollar grants are no lasting solution to this impasse. 

The solution is a higher level of two-way trade. Thus we can sell 
and receive payment for our exports and have an increasing volume of 
investment abroad to assist economic development overseas and yield 
returns to us. Greater freedom from restrictions and controls and the 
increased efficiencies which arise from expanding markets and the freer 
play of economic forces are essential to the attainment of this higher 
trade level. 

353 



<| 67 Public Papers of the Presidents 

Failure so to move will directly threaten our domestic economy, for 
it will doom our efforts to find ways by which others, through their own 
efforts, can buy our goods. The only practicable alternative is to reduce 
exports. Our farms would have to sell less, since the products of 40 
million acres, amounting to 10 to 12 percent of our agriculture, would 
have to find their market outside our own country. Moreover, if their 
export markets were curtailed, American factories now selling their 
products throughout the world would have to reduce employment. It 
is a very important fact that over 4 million American workers depend 
on international trade for their employment. 

Beyond our economic interest, the solidarity of the free world and the 
capacity of the free world to deal with those who would destroy it are 
threatened by continued unbalanced trade relationships — the inability 
of nations to sell as much as they desire to buy. By moving boldly to 
correct the present imbalance, we shall support and increase the level of 
our exports of both manufactured and agricultural products. We shall, 
at the same time, increase the economic strength of our allies. Thus shall 
we enhance our own military security by strengthening our friends 
abroad. Thus shall we assure those sources of imports that supplement 
our domestic production and are vital to our defense. Thus shall we 
raise our standard of living and aid in the development of a better world 
for all of us and our children. 

TARIFFS 

I am convinced that the gradual and selective revision of our tariffs, 
through the tested method of negotiation with other nations, is an essen- 
tial ingredient of the continuing growth of our domestic economy. An 
expression of our willingness to negotiate further will offer needed lead- 
ership towards the reduction of trade and payments barriers that limit 
markets for our goods throughout the world. 

The Commission on Foreign Economic Policy recommended a three- 
year extension of the Trade Agreements Act with amendments to 
authorize : 

a. Reduction, pursuant to trade agreement negotiation, of existing 
tariff rates on commodities selected for such negotiations by not more 
than 5 percent of present rates in each of the three years of the new act; 

b. Reduction, by not more than one-half over a three-year period, of 

354 



Dwight D. Eisenhower, IQ54 (ft 67 

tariffs in effect on January 1, 1945, on products which are not being 
imported or which are being imported only in negligible volume; and 

c. Reduction, over a three-year period, pursuant to trade agreement 
negotiation, to 50 percent ad valorem, or its equivalent, of any rate in 
excess of 50 percent ad valorem, or its equivalent. 

I have approved these recommendations of the Commission and urge 
their adoption by the Congress. I may also recommend special provisions 
for negotiation with Japan in view of the economic problems of that 
country. 

The foregoing authority does not contemplate across-the-board tariff 
reductions. The peril point and escape clause procedures would, of 
course, be preserved, and the three proposed types of rate reduction would 
not be cumulative. Tariff reductions would be made selectively on spe- 
cific commodities, and only after notice and hearings in accordance with 
past practice. This would represent our part in the gradual and careful 
approach to the whole problem of improved trade which the world so 
urgently needs. No sudden, sharp, or widespread adjustments within 
our economy would be involved. 

These escape clause and peril point provisions of our tariff legislation 
are designed to mitigate injury to our domestic producers from tariff 
reductions. Whenever recourse is had to these provisions, I shall care- 
fully consider the findings and recommendations of the Tariff Commis- 
sion. My responsibilities for the welfare of the nation require that I 
continue to base my decisions at times on broader grounds than the Tariff 
Commission is empowered to consider. The Commission on Foreign 
Economic Policy supports this position. 

I have approved the Commission's recommendations that the United 
States withhold reductions in tariffs on products made by workers re- 
ceiving wages which are substandard in the exporting country. This 
policy shall be placed in effect. I have also approved the Commission's 
recommendations concerning raising of labor standards through consulta- 
tive procedures and cooperation in international conferences such as those 
sponsored by the International Labor Organization. 

These recommendations for renewal and amendment of the Trade 
Agreements Act are based on the plain truth that if we wish to sell 
abroad we must buy abroad. 



355 



CJ[ 67 Public Papers of the Presidents 

THE GENERAL AGREEMENT ON TARIFFS AND TRADE 

Since 1948, virtually all the major trading nations of the world, includ- 
ing the United States, have become parties to a General Agreement on 
Tariffs and Trade. This Agreement has been the principal arrangement 
by which we in the United States have sought to carry out the provisions 
and purposes of the Trade Agreements Act. 

The Commission on Foreign Economic Policy has recommended that 
the United States renegotiate the organizational provisions of the Agree- 
ment, so that the contracting parties acting collectively would confine 
their functions to sponsoring multilateral trade negotiations, recommend- 
ing broad trade policies for individual consideration by the legislative 
or other appropriate authorities in the various countries, and providing 
a forum for consultation regarding trade disputes. 

I shall act promptly upon this recommendation. At the same time, 
I shall suggest to other contracting parties revisions of the substantive 
provisions of the Agreement to provide a simpler, stronger instrument 
contributing more effectively to the development of a workable system 
of world trade. When the organizational provisions of the Agreement 
have been renegotiated, they will be submitted to the Congress for its 
approval. 

CUSTOMS ADMINISTRATION AND PROCEDURE 

The problems of tariff classification, of proper valuation of imported 
articles and of procedures for administering the customs are complex 
and perplexing. Over the years these problems have grown to the point 
where they now constitute an unwarranted and unintended burden on 
trade. 

The United States may be no worse in this regard than many other 
nations, but good business practice alone is sufficient to require : 

a. Simplification of commodity definitions, classifications and rate 
structure; 

b. Improvement in the methods of valuation of imports; and 

c. Establishment of more efficient procedures for customs adminis- 
tration. 

To this end I shall propose legislation providing for the simplification 
of the commodity definitions and rate structures in the Tariff Act, after 
a study by the Tariff Commission, and subject to appropriate standards 
to be established by the Congress. Such legislation should also provide 

356 



Dwight D. Eisenhower, ig$4 <][ 67 

for a better method of classification of articles not enumerated in the 
tariff schedules, and for such improvement in the statutes governing the 
administration of customs procedures as can be made at this time. In 
this connection I am directing the Department of the Treasury to keep 
customs procedures under continuous review and to report to the Con- 
gress annually on the difficulties and delays in processing goods through 
Customs, together with recommendations for action to eliminate such 
obstructions. I further recommend that the anti-dumping law and pro- 
cedures under it be changed so far as necessary to permit speedier and 
more efficient disposal of cases and to prevent undue interference with 
trade during investigation of suspected dumping. 

To provide an improved basis for customs valuations I urge adoption 
of the Treasury's valuation proposals. These are embodied in H.R. 
6584 which has already been passed by the House of Representatives. 

U.S. INVESTMENT ABROAD 

An increased flow of United States investment abroad could contribute 
significantly to the needed expansion of international trade. It also 
could help maintain a high level of economic activity and employment 
in the United States. Further, such investment contributes to the devel- 
opment abroad of primary resources needed to meet our own ever- 
increasing needs even while it helps to strengthen the economies of foreign 
countries. In view of the great importance of private investment to our 
foreign economic policy, I emphasize the necessity for passage of the 
Administration tax bill already recommended to you and already ad- 
vanced in your considerations which provides for: 

a. Taxation of business income from foreign subsidiaries or from seg- 
regated foreign branches which operate and elect to be taxed as sub- 
sidiaries at a rate 14 percentage points lower than the regular corporate 
rate; 

b. Broadening the definition of foreign taxes which may be credited 
against the United States income tax to include any tax, which is the 
principal form of taxation on business in a country, except turnover, 
general sales taxes or excise, and social security taxes; 

c. Removing of the overall limitation on foreign tax credits; and 

d. Permitting regulated investment companies concentrating on for- 
eign investment to pass on to their stockholders the credit for foreign 
taxes which would be available on direct investment. 

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<J 67 Public Papers of the Presidents 

Further to encourage the flow of private investment abroad, we shall 
give full diplomatic support, through our activities here and through our 
missions and representatives in the field, to the acceptance and under- 
standing by other nations of the prerequisites for the attraction of private 
foreign investment. We shall continue to use the treaty approach to 
establish common rules for the fair treatment of foreign investment. 

In connection with legislation authorizing the Mutual Security Program 
I suggest that the Congress consider the desirability of broadening the 
existing authority to guarantee against losses on new investment abroad, 
so as to cover losses caused by war, revolution and insurrection. 

The Commission has pointed out that uncertainty as to the application 
of United States antitrust laws to the operations of American firms abroad 
is a deterrent to foreign investment. It recommended that our antitrust 
laws be restated in a manner which would clearly acknowledge the right 
of each country to regulate trade within its own borders. At the same 
time, the Commission insisted that it should be made clear that foreign 
laws or established business practices which encourage restrictive price, 
production or marketing arrangements will limit the willingness of United 
States businessmen to invest abroad and will reduce the benefits of such 
investment to the economies of the host countries. 

I have requested the Department of Justice to consider this recom- 
mendation in connection with its current study of the antitrust laws. 

BUY AMERICAN LEGISLATION 

At present certain of our laws require that, in specified Federal or 
Federally-financed procurement, preference be given to domestic firms 
over foreign bidders. Except where considerations of national security, 
persistent and substantial unemployment, or encouragement of small 
business require otherwise, I agree with the Commission that it is improper 
policy, unbusinesslike procedure and unfair to the taxpayer for the Gov- 
ernment to pay a premium on its purchases. 

I request, therefore, that legislative authority be provided to exempt 
from the provisions of this legislation the bidders from nations that treat 
our bidders on an equal basis with their own nationals. Meanwhile, the 
Executive Branch is clarifying the application of these preference prin- 
ciples to government procurement. It will limit the price differential 
favoring domestic producers over foreign bidders to a reasonable percent 
dependent upon the circumstances over and above whatever tariffs may 

358 



Dwight D. Eisenhower, 1^4. <fl" 67 

apply. Discretionary authority, however, must be continued to permit 
special consideration in government procurement for the requirements 
of national security, for the problems of small business and of areas where 
persistent and substantial unemployment exists. 

RAW MATERIALS 

This country is blessed with abundant mineral resources, but we must 
make the most of them if we are to satisfy the ever-increasing appetite of 
an expanding economy and at the same time maintain an adequate 
defense posture. We must recognize, however, that it is not possible for 
this nation, or any other nation, to produce enough of every metal and 
mineral needed by modern industry. These materials are not evenly 
distributed throughout the world. We have to depend on one another. 
Our foreign economic policies, therefore, must encourage the relatively 
easy flow of these materials in international trade. 

The Commission has made two sets of recommendations which I 
believe will materially assist in achieving an orderly expansion of mineral 
production both here and abroad. 

The first is that the United States Government should make a con- 
structive contribution toward greater stability of world prices of raw 
materials by moderating or relaxing impediments to international trade, 
by encouraging diversification of foreign economies, by avoiding procure- 
ment practices which disturb world prices, by consultation with other 
nations, and by tempering the fluctuations in our own economy. 

The second calls for increased encouragement of investment in over- 
seas production by our citizens and the nationals of other countries. 

I heartily endorse these recommendations. 

The Commission also recommended that domestic sources for raw 
materials required for military purposes should be assured by direct 
means and not by tariffs and import quotas. I believe that normally this 
is sound. 

However, I have appointed a special Cabinet committee which is now 
surveying the whole field of our minerals policy and have drawn their 
attention to these recommendations. 

AGRICULTURE 

Perhaps no sector of our economy has a greater stake in foreign trade 
than American agriculture. In recent years, for example, one-third of 

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^f 67 Public Papers of the Presidents 

our wheat, forty percent of our cotton and rice, and one-fourth of our 
tobacco and soybeans have been exported. It is highly important to 
maintain foreign markets for our agricultural products. 

Any program designed to serve the interests of American agriculture 
must take due account of the necessity for export markets. Put in the 
words of the Commission, "It is necessary to harmonize our agricultural 
and foreign economic policies without sacrificing the sound objectives of 
either." I am convinced such reconciliation is possible. Acceptance of 
the recommendations in my Agricultural Message of January 1 1 will, I 
feel certain, help accomplish this objective. 

MERCHANT MARINE 

With respect to our ocean shipping, we must have a merchant marine 
adequate to our defense requirements. I subscribe to the principle that 
such support of our merchant fleet as is required for that purpose should 
be provided by direct means to the greatest possible extent. Such a 
policy, however, requires a careful analysis of the means available for 
providing direct support, its possible effects on foreign flag vessel carryings, 
and its total costs before a specific program can be recommended. 

The Department of Commerce has already studied this problem at 
length. Its findings will be further reviewed within the Executive Branch 
in order to develop specific recommendations to transmit to the next 
session of the Congress, in addition to the proposals submitted by the 
Executive Branch that are now before the Congress. 

INTERNATIONAL TRAVEL 

International travel has cultural and social importance in the free 
world. It also has economic significance. Foreign travel by Ameri- 
cans is a substantial source of dollars for many countries, enabling them 
to pay for what we sell them. 

While the promotion of tourism is primarily a responsibility of the 
countries which welcome visitors, and is a function for private enter- 
prise, there are some specific governmental actions which can be helpful. 
For example, there is H.R. 8352 which increases the duty-free allowance 
for tourists from $500 to $1000, exercisable every six months, I recom- 
mend its passage. From time to time I may have other recommendations 
for legislative action to stimulate travel. 

Meanwhile, in the Executive Branch, I shall instruct the appropriate 

360 



Dwight D. Eisenhower, ig^4 <][ 67 

agencies and departments, at home and abroad, to consider how they 
can facilitate international travel. They will be asked to take action to 
simplify governmental procedures relating to customs, visas, passports, 
exchange or monetary restrictions and other regulations that sometimes 
harass the traveler. 

ECONOMIC AID AND TECHNICAL ASSISTANCE 

Assistance extended in the past by the United States to other free 
nations has played an effective part in strengthening the national security, 
developing important resources, and opening up significant opportunities, 
for ourselves and for others. It has also carried with it, in many instances, 
particularly in technical cooperation and famine relief, a deep humani- 
tarian response by our people. However, economic aid cannot be con- 
tinued indefinitely. We must distinguish between an emergency and 
a chronic malady, between a special case and a general rule. 

I subscribe, therefore, to the principle that economic aid on a grant 
basis should be terminated as soon as possible consistent with our national 
interest. In cases where support is needed to establish and equip mili- 
tary forces of other governments in the interest of our mutual defense, 
and where this is beyond the economic capacity of another country, 
our aid should be in the form of grants. As recognized by the Commis- 
sion, there may be some cases in which modest amounts of grant aid to 
underdeveloped countries will importantly serve the interest of security. 
I further agree that in other situations where the interest of the United 
States requires that dollars not otherwise available to a country should 
be provided, such support to the maximum extent appropriate should 
be in the form of loans rather than grants. 

In extending such loans, we must be careful not to interfere with the 
normal lending activities and standards of the Export-Import Bank. 
The International Bank is the primary institution for the public financing 
of economic development. The Export-Import Bank will consider on 
their merits applications for the financing of development projects, which 
are not being made by the International Bank, and which are in the 
special interest of the United States, are economically sound, are within 
the capacity of the prospective borrower to repay and within the prudent 
loaning capacity of the Bank. 

I approve the recommendations of the Commission on Foreign Eco- 
nomic Policy that the United States participation in technical cooperation 

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<][ 67 Public Papers of the Presidents 

programs should be pressed forward vigorously. Such programs should 
concentrate on providing experts and know-how rather than large funds 
or shipments of goods except for necessary demonstration equipment. 
They should not provide capital for investment but should be so admin- 
istered as to fit into the programs of development of the assisted countries 
and they should be related to any private or public investment likely to 
be forthcoming. 

Review of the requirements for the Mutual Security Program has been 
conducted with these principles in mind and substantial reductions in 
grant aid have been made by this Administration. The legislation which 
I shall later propose for the Mutual Security Program will reflect these 
principles. 

EAST-WEST TRADE 

In viewing the problems of other nations of the free world, we are 
forced to recognize that the economies of some of them have been weak- 
ened by the disruption of the broad historic pattern of trade between 
East and West. 

Curtailment of our aid programs will increase the pressures for resump- 
tion of such trade. A greater exchange of peaceful goods between East 
and West — that is, goods not covered by the Battle Act nor otherwise 
considered strategic — so far as it can be achieved without jeopardizing 
national security, and subject to our embargo on Communist China and 
North Korea, should not cause us undue concern. I shall, of course, 
take appropriate action to ensure that our security is fully safeguarded. 

CONVERTIBILITY 

The Commission rightly regards positive progress toward currency 
convertibility as an indispensable condition for a freer and healthier 
international trade. Steps toward enabling holders of foreign currencies 
to convert them freely into other currencies deserve our encouragement. 

The Commission has correctly observed that the initiative and respon- 
sibility for introducing currency convertibility must rest with the countries 
concerned. I am happy to say that such initiative is being taken. The 
British and other members of the Commonwealth of Nations have met 
twice, in London and in Sydney, to consider plans for convertibility of 
the pound sterling. The United Kingdom and other important nations of 
Europe have discussed their aims with us. Individually they are taking 
constructive steps affecting their own currencies. In addition, discus- 

362 



Dwight D. Eisenhower, ig$4 <| 67 

sions among them which are now under way in connection with the 
renewal of the European Payments Union are being largely influenced 
by their desire to prepare the way for convertibility. 

I have approved the Commission's recommendations for cooperation 
in strengthening the gold and dollar reserves of countries which have 
prepared themselves for convertibility by sound internal and external 
policies. These recommendations do not call for new action by the Con- 
gress. Authority and procedures for this purpose already exist. The 
United States will support the use of the resources of the International 
Monetary Fund as a bulwark to strengthen the currencies of countries 
which undertake convertibility. In addition, a study is now being made, 
as suggested by the Commission, of the possibility of standby credits from 
the Federal Reserve System. 

CONCLUSION 

What I have outlined to you is a minimum program which should be 
judged as a whole. Its various parts are interrelated; each requires the 
other. 

Conceived as a whole, this program consists of four major parts: 

Aid — which we wish to curtail 

Investment — which we wish to encourage 

Convertibility — which we wish to facilitate and 

Trade — which we wish to expand 

I consider it essential that we achieve each of these objectives, which 
we must clearly understand are closely interlocked: As we curtail our 
aid, we must help to close the dollar gap by expanding our foreign invest- 
ment and trade. This expansion will be facilitated by a return to con- 
vertibility of foreign currencies. The return by our friends abroad to 
convertibility will be encouraged if our trade policy leads them to expect 
expansion of our foreign trade and investment. 

Unless we are prepared to adopt the policies I have recommended to 
expand export and import trade and increase the flow of our capital 
into foreign investment, our friends abroad may be discouraged in their 
effort to re-establish a free market for their currencies. If we fail in our 
trade policy, we may fail in all. Our domestic employment, our stand- 
ard of living, our security, and the solidarity of the free world — all are 
involved. 

For our own economic growth we must have continuously expanding 

363 



<]f 67 Public Papers of the Presidents 

world markets; for our security we require that our allies become eco- 
nomically strong. Expanding trade is the only adequate solution for 
these two pressing problems confronting our country. 

Dwight D. Eisenhower 

note: The report of the Commission on uary 1954). See also note to Item 16, 
Foreign Economic Policy was published above, 
by the Government Printing Office (Jan- 



68 ff The President's News Conference of 
March 31, 1954. 

the president. As you can suspect, ladies and gentlemen, from the 
picture-taking this morning, we are trying a little bit of an innovation. 

There has been some slight interest shown in the tests recently con- 
ducted in the Pacific, and for this reason, I brought along with me this 
morning the expert in that field. After I take a certain share of the press 
conference time, I am going to turn the rest of it over to him. Of course, 
this will also give me a unique privilege of seeing someone else in this 
particular spot ! 1 

One of the things that I should like to take a moment to talk about is 
the excise taxes. 

The excise taxes, of course, have reduced revenues a very considerable 
amount more than I recommended. Nevertheless, from the beginning it 
was acknowledged that here was a field that was open to discussion. 
There is one school of thought that believes that cutting of excise taxes 
can have such a great effect in stimulating of business that the revenues 
will not be hurt as much as we estimate. 

In any event, the bill, continuing certain needed excise taxes on beyond 
April 1 st — that is tomorrow — is going to be signed. I will sign it today. 
I accept it wholeheartedly, and we are certainly hopeful that any damag- 
ing results will not be as great as might be. 

I should like to call attention to this one fact: on figures furnished to 
me by the Treasury, this will be the greatest single tax reduction in dollars 
ever accomplished by the American Government, $7,400,000,000 reduced 



1 The President referred to the Chairman of the Atomic Energy Commission, Lewis 
L. Strauss. See note at end of this news conference. 

3^4 



Dwight D. Eisenhower, IQ54 <J 68 

in one year in taxes. This includes, of course, the reduction in income 
taxes of January 1st, the abolition of the excess profits tax, and this excise 
tax. That will be a huge amount of money in the hands of private citizens 
to spend themselves; and, certainly, we have every reason to believe that 
it will be a stimulating factor in our economy. 

Another point to discuss just briefly is housing. There has been a lot 
of different kinds of thinking on public housing. I think most of you 
are aware of the general provisions of the plan that I submitted to the 
Congress some couple of months ago, and I am informed that Mr. Wol- 
cott's committee is bringing out that program largely in the same form 
as presented to him. 

Now, in the public housing factor, there has been a very considerable 
struggle, but I am delighted that yesterday the leadership succeeded in 
getting the necessary appropriations so that approximately 35,000 public 
housing units can be constructed this year. And the authorization will 
certainly be accorded to go for a like amount or something of that order 
next year, in the authorization committee. 

The other item that I wanted to mention was the Randall report, and 
my message to Congress on foreign trade. I think the report and the 
message largely speak for themselves, but I do want to make this one 
observation : in making this kind of an adjustment, in trying to move from 
an era in which our friends abroad had to depend so markedly on direct 
aid into an era where expanded trade will be of benefit to all of us, certain 
difficulties, even certain hardships can occur not only in our country but 
in others. 

The Government is alert to that situation, will constantly be vigilant 
to see that any damage of that kind does not become one that is unjusti- 
fied as you think of the welfare of the 160 million people, and will take 
such steps as are necessary to prevent them from becoming either wide- 
spread or severe. But that there will be some adjustments of that kind 
is, of course, inevitable. 

I do believe that in this day and time, the free world must come more 
and more to realize that in an expanding, healthy, two-way trade lies our 
best insurance that the doctrines of statism cannot come in and over- 
come our whole idea of free government. Within our own country we 
don't feel that danger so intimately; the danger, in other words, is not 
in position, let us say, of breathing down our necks. But in some of the 
others it is, and we have got to take all of those things into consideration 

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<][ 68 Public Papers of the Presidents 

as we stand firmly for a principle which, in the long run, is for the good 
of all of us. It is going to take very great firmness because, as I say, 
there are bound to be some maladjustments and difficulties. 

Now, that was my speech for the morning, ladies and gentlemen; and 
the rest of my time that I have allocated to myself, we will take up with 
questions. 

Q. Merriman Smith, United Press: I wonder if you could explore 
for us, sir, or amplify on Secretary Dulles' speech the other night in which 
he spoke of our readiness to take united action in the Far East. 

the president. Well, of course, the speech must stand by itself. I 
should say that I was over every word of it beforehand; Secretary Dulles 
and I, as usual, find ourselves in complete agreement. 

I have forgotten the exact words that he used in respect to the question 
you raised, but he did point out that it is in united action of all nations 
and peoples and countries affected in that region that we can success- 
fully oppose the encroachment of communism, and should be prepared 
to meet any kind of attack that would come in there. He pointed out 
the great value of the region to all the free world and what its loss would 
mean to us. 

So, I think, aside from just the assertion that we are seeking that kind 
of united action among all our friends, that the speech otherwise must 
stand by itself. 

Q. Martin Agronsky, American Broadcasting Company: Mr. Presi- 
dent, I wondered if I could ask one more specific question along those 
lines. The united action has been interpreted generally as indicating, 
perhaps, intervention, direct intervention or direct use, more accurately, 
of American troops. Can you comment on that — if necessary? 

the president. Well, I have said time and again that I can conceive 
of no greater disadvantage to America than to be employing its own 
ground forces, and any other kind of forces, in great numbers around the 
world, meeting each little situation as it arises. 

What we are trying to do is to make our friends strong enough to take 
care of local situations by themselves, with the financial, the moral, the 
political and, certainly, only where our own vital interests demanded any 
military help. 

But each of these cases is one that has its own degree, let us say, of 
interest for the United States, its own degree of risk and danger; conse- 
quently, each one must be met on its merits. 

366 



Dwight D. Eisenhower, ig54 ^ 68 

I couldn't possibly give you a general rule of what the United States 
would do in a situation, because no one could know all of the circum- 
stances surrounding it. I think the best answer I ever heard in diplomacy 
was that given by France, I believe, to Germany in late August or late 
July of 1 9 1 4. When Germany asked her her intentions, she said, "France 
will do that which her best interests dictate," and that is about the only 
answer I believe you can give, except in terms of very great generality. 

Q. Garnett Horner, Washington Evening Star: Mr. President, reports 
from Europe indicate that the European Defense Community project is 
bogging down. That raises again the question of whether we have all 
our policy eggs in that EDC basket, or whether there is some alternative 
in mind if EDC fails. Could you comment on that? 

the president. Well, I just say this. I have been threatened with 
defeat before, and I don't fight my second battle on the supposition that 
it is going to occur. 

I am all out for the approval of EDC and establishing it as a factor 
that will insure Europe's safety. Until that question is definitely settled — 
and I still firmly believe in the affirmative — I am not going to comment 
on what else could happen. 

Q. Robert G. Spivack, New York Post: Mr. President, an explosive 
situation seems to be building up in the Middle East between the Arab 
States and Israel, which the Soviet Union seems to be exploiting, if not 
fomenting. I wondered if you favored bringing the Israel-Arab dispute 
before the U.N. Security Council, the whole dispute? 

the president. I couldn't comment on that at the moment. It would 
be, I think, speaking a little bit recklessly. 

We have had a very definite program of our own that we have sup- 
ported — when I say "of our own" I don't mean it quite that way — we 
have thoroughly approved the idea that is implicit in the U.N. plan that 
through some economic unity there we would achieve a better, let us say, 
psychological and political union ; therefore, we have been very strongly 
supporting the plan of development, including water development and 
sharing, that we hoped would be effective. 

There is, of course, so much emotionalism in the thing that you can't 
tell from day to day how it is going to come out. But I do say it is a 
case where both sides ought to restrain their partisans and their extremists, 
use a little bit of reason, and depend upon the judgments of outside people. 

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<][ 68 Public Papers of the Presidents 

Q. Francis M. Stephenson, New York Daily News: I wonder, is the 
Federal Government planning to take any action in the New York water- 
front strike? 

the president. The question is about the New York waterfront strike. 

I, of course, want to be careful that I don't pretend that I am going 
to get into a field where it is so technical that I couldn't possibly expect 
to know the answers; so I will talk a little bit in generalities but, I think, 
clearly enough to show intention and concern. 

Any strike of this kind is of the utmost importance to the whole 
Nation and, therefore, to your Federal Government. 

Whenever we touch this delicate transportation system of the United 
States and affect it seriously, we affect the economy, we affect the living, 
the welfare of many thousands; we affect even such things as health and 
sanitation, that sort of thing. So these things become serious instantly. 

The second they occur, every department of Government that has 
any possible connection instantly keeps abreast of the situation: the 
Attorney General; the NLRB — largely independent — of course does so, 
and determines such things as elections and all that sort of thing; at the 
same time, Federal courts, an independent branch, take action. Finally 
it becomes necessary to make sure that their orders are obeyed. 

There is also, of course, the understanding in America that everything 
is handled locally as long as it can be, and you don't bring down Federal 
agencies until it is necessary. There are city authorities, there are State 
authorities; they are doing their best, and again we have one of those 
cases where partnerships must be observed. 

The Federal Government has certain grave responsibilities imposed by 
law, but there are also the police powers and that sort of thing in 
keeping order that reside in the local authorities. So it is a question of 
partnership. Our Attorney General, the NLRB, the Secretary of Labor, 
everybody, is keeping up with this as closely as possible, and to keep me 
informed as to the whole situation, so that if it does become the respon- 
sibility of the Federal Government to take more positive action, we are 
ready to move in accordance with law, the Constitution, and the merits 
of the case. 

Now, there is very little more you can say, I think, on that matter. 

Q. Otto Leichter, Arbeiter-Zeitung, Vienna, Austria, and Swiss and 
West German Newspapers: Mr. President, do you consider or contem- 
plate any new initiative to obtain an Austrian independence treaty or 

368 



Dwight D. Eisenhower, ig$4 <R 68 

the withdrawal of all occupation forces, or at least to ease the occupation 
of Austria? 

the president. I am not sure that I understood every single impli- 
cation of your question; but, generally, it was, do we have any new 
approach now to secure a general approval of the Austrian treaty. 

About the only observation I could make on it is this: for now, I think 
it is, 6 or 7 years, we have stood firmly for the early completion of the 
Austrian treaty, believing it to be wholly unjust and unnecessary to 
continue the occupation of that country, in view particularly of the facts 
that early in the war it was agreed that Austria had been occupied 
country and not an instigator of the war. So I know of no reason that 
we shouldn't continue to stand on that belief; as a matter of fact, I know 
we do, and we will certainly be alert to every possible way of easing the 
situation. But when you come down to asking me to predict success 
or what could be a brand new approach, I could not comment. 

Q. George E. Herman, CBS Radio: Mr. President, the last few weeks 
the Soviet Union has broken a considerable amount of precedent by 
publishing the details of nuclear and thermonuclear explosions. Could 
you tell us what your feelings are on their policies and intentions in 
making public these facts lately? 

the president. No, I don't really know. 

We have had many discussions on them — I would say inconclusive; 
but there are some who believe that it is indicating a slight change in 
public policy that might indicate a greater readiness to negotiate earnestly 
and honestly. 

We are trying to keep ourselves in position so that, at any sign of 
negotiating honestly, we can do so with confidence, on the plan that I 
suggested last December — which would be merely a beginning. All 
things like that, we would certainly welcome in view of the situation in 
the world today. 

Q. Ray L. Scherer, National Broadcasting Company: Mr. President, 
the last couple of weeks several members of your team have announced 
they are returning to private life: C. D. Jackson, Mr. Kyes, and Mr. 
Dodge. Could you discuss with us the problem of inducing such men 
to stay in Government? 

the president. Today, I think it is perfectly clear to all of us, with 
the family responsibilities that men have, with the tax situation that they 

369 



C[[ 68 Public Papers of the Presidents 

have, children to educate, and all of that sort of thing, it is only natural 
that they think this kind of public duty should be shared. 

Now, each of the three men you name promised to stay a year. In 
each case, because of certain changes in the program and the need for 
having very intelligent expositions before the committees of the House 
and the Senate, they have agreed to stay a little longer. 

They are difficult to replace, but in at least two instances I am sure 
we have two very able and capable men to take their places. 

I believe that any government such as this is not wholly damaged by 
some rotation of people, bringing fresh people in from the outside as 
long as they are capable in themselves and dedicated. 

The three men that are going, that you just named, I couldn't speak 
of them in terms of too great praise. I think they have done a remark- 
able job. I am indebted to them, and I think the people are indebted 
to them. So it is not easy for any people to fill their shoes, but when you 
can do it, a certain amount of that rotation is good rather than bad. 

Q. Clark R. Mollenhoff , Des Moines Register and Tribune : Mr. Pres- 
ident, several weeks ago I had asked if the White House had given up 
its efforts to obtain the resignation of Chairman Johnson of the ICC, 
and at that time you stated that you had no knowledge of that, and I 
wondered if you had an opportunity to acquaint yourself with the ICC 
problem of personnel. 

the president. As a matter of fact I forgot about that question. Will 
you make a note, and I will. [Confers with Mr. Hagerty] 

As a matter of fact, Mr. Hagerty says that I make an answer that is 
very, very unusual for me, because he says "No comment." I don't know 
anything about it, but I will try again to look it up. [Laughter] 

That is my last question, and now Mr. Strauss is going to take over.. 
I didn't realize that time had gone. 

note : During the remainder of the news reading from his statement Mr. Strauss 

conference the Chairman of the Atomic answered queries from members of the 

Energy Commission, Lewis L. Strauss, press. 

read from a prepared statement making The statement was released by the 

public those portions of his report to the White House. Excerpts of the statement 

President of March 30, 1954, as could be were published in the Department of 

released without compromising the na- State Bulletin (vol. 30, p. 548). 

tional security. The Chairman described President Eisenhower's thirty-third 

his visit to the AEC proving grounds in news conference was held in the Execu- 

the Marshall Islands where he witnessed tive Office Building from 10:30 to 11:09 

the second part of the thermonuclear o'clock on Wednesday morning, March 

weapons tests for which Bikini and Eni- 31, 1954. In attendance: 235. 
wetok served as bases of operations. After 

370 



Dwight D. Eisenhower, IQ54 <& 7° 

69 ^ Letter to Lindsay Warren Regarding His 
Retirement as Comptroller General of the United 
States. March 31,1 954 

Dear Mr. Warren: 

It is with a great deal of regret that I agree to the request in your letter 
to retire on April 30, 1954, as Comptroller General of the United States. 
It is unfortunate from every viewpoint that you are unable to complete 
your full term after thirteen and one-half years of outstanding service 
in that important position. Not only has your service been long, it has 
also embraced the period of tremendous responsibility in government 
incident to the conduct of the second World War, the postwar military 
and foreign aid programs, and the Korean conflict. However, I can 
certainly understand that it would be inadvisable to continue in this very 
demanding office against the advice of your doctors. 

You have left a lasting mark on government in the great program of 
the General Accounting Office and can take deep pride in so vast a con- 
tribution to better, more efficient governmental operation. 

I appreciate the fine cooperation you have given this Administration. 
Please accept my warm good wishes for a fully satisfying and happy 
retirement. 

Sincerely, 

Dwight D. Eisenhower 

70 ^ Statement by the President on the Death of 
General Hoyt S. Vandenberg. April 2, 1 954 

THE NATION mourns the passing of a devoted and able military 
leader, General Hoyt S. Vandenberg, and will hold him in grateful 
remembrance. 

Gallant commander, a decade ago, of our tactical air force in North- 
west Europe; unswerving advocate of the precepts and cause of the 
United States Air Force; a forceful fighter for a strong national defense — 
General Vandenberg was a courageous and tireless leader. He has left 

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a lasting imprint on the Service he loved so well and on the nation he 
served with all his strength and skill. 

News of his untimely death brings sorrow to his host of civilian and 
military friends, among whom I was privileged to be numbered. 

71 ^ Statement by the President on the Fifth 
Anniversary of the Signing of the North Atlantic 
Treaty. April 4, 1 954 

FIVE YEARS AGO today, the signing of the North Atlantic Treaty 
launched a unique working partnership among the Atlantic peoples. 
Their alliance for the preservation of peace and mutual defense against 
Communistic aggression is now a mighty bulwark of the free world. 

NATO symbolizes the unity of free men in an age of peril. Fourteen 
nations, diverse in language and economy and custom and political struc- 
ture, are joined within it because each nation is determined to sustain 
its own independence. Dedicated to a common purpose, their strength 
is multiplied, their inexhaustible energies are pooled. 

During my service with NATO there were many uniforms worn, 
many tongues spoken at my headquarters. But daily I found new 
inspiration in the unity of spirit among my comrades. 

The inspiration remains with me; a cherished memory, a heartening 
proof that free men — united — can face any peril unafraid. NATO is 
visible evidence that, in cooperation among the free peoples, we can best 
preserve our common heritage of freedom against any threat. 

72 *I Radio and Television Address to the 
American People on the State of the Nation. 

Aprils 1954 

[ Delivered from the Broadcast Room of the White House at 8 : 30 p.m. ] 
Good evening, my friends: 

This evening I want to talk to you about a very big subject. I want 
to talk to you about this great country of ours. I should like to ask you, 

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Dwight D. Eisenhower, 1954 ^ 72 

with me, to make a quick survey of its strength, its problems, its appre- 
hensions, and its future. Particularly I would like to talk to you about 
what you and I can do about its future. 

Now, as we first take a look at the strength of America, you and I 
know that it is the most productive nation on earth, that we are richer, 
by any standard of comparison, than is any other nation in the world. 
We know that we have great military strength — economic — intellectual. 
But I want to call your particular attention to spiritual strength. 

Now, I don't think it is amiss, in this season of the year that has so many 
religious overtones, that we call attention to this fact: that in conception, 
our Nation had a spiritual foundation, so announced by the men who 
wrote the Declaration of Independence. You remember what they said? 
"We hold that all men are endowed by their Creator with certain rights." 
That is very definitely a spiritual conception. It is the explanation of 
our form of government that our Founding Fathers decided upon. 

And now, today, that spiritual strength is just as great in its require- 
ments as it has ever been in our whole history. By this I mean it is very 
important that you and I value the spiritual things that they had in mind 
when they founded this country. 

For example, the things that were stated in the Bill of Rights, the things 
that announce the rights that every single individual has in this country; 
his equality before the law, his right to worship as he pleases, and think 
as he pleases, and talk as he pleases, just so he does not trespass on the 
rights of others. And the other part of the spiritual strength we need today 
is the same stamina and courage and gallantry that our forefathers had 
in defending those rights. 

I want to call your attention to this particular part of the American 
strength, because without all this everything else goes by the board. We 
must be strong in our dedication and our devotion to America. That 
is the first element of our entire strength. But all in all, this total 
strength of America is one of those things we call — and the world calls — 
unbelievable. 

Now why, then, with all this strength, should we be worried at times 
about what the world is doing to us? Actually we see threats coming 
from all angles — internal and external, and we wonder what is going to 
happen to us individually and as a Nation. 

Now, perhaps I can illustrate some of the reasons for this concern of 
today. Thirty-seven years ago tomorrow, our country entered the First 

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(][ j 2 Public Papers of the Presidents 

World War. At that time, I was a lieutenant serving with the United 
States Infantry in Texas. My regiment was armed, as were all other 
regiments, with the same kind of equipment, at least as to type and general 
character of power, as were the regiments that fought the Spanish- 
American War. Now, only a year ago, the hydrogen bomb was exploded 
in the Pacific. Last month, another series of tests was undertaken. 

Now, this transfer of power, this increase of power from a mere musket 
and a little cannon, all the way to the hydrogen bomb in a single lifetime, 
is indicative of the things that have happened to us. They rather indi- 
cate how far the advances of science have outraced our social conscious- 
ness, how much more we have developed scientifically than we are capable 
of handling emotionally and intellectually. So that is one of the reasons 
that we have this great concern, of which the hydrogen bomb is merely 
a dramatic symbol. 

None of the questions that bothers us today has an easy answer. And 
many of them have no answers at all, at least in their complete sense. 
We may only do our best, and from there on make sure that we are doing 
all that human beings can do to meet these problems. 

This is not greatly different from what the ordinary American family 
does. It has the problems of meeting the payments on the mortgage, 
paying for the family car, educating the children, laying aside some 
money for use in case of unexpected illness. It meets these problems 
courageously. It doesn't get panicky. It solves these problems with 
what I would call courage and faith, but above all by cooperation, by 
discussing the problem among the different members of the family and 
then saying: this is what we can do, this is what we will do, and reaching 
a satisfactory answer. 

The problems of America are the family problems multiplied a million- 
fold. That is what we are talking about tonight. 

Now I am not going to try to talk about all these problems. We can 
talk about water conservation, and soil erosion, and handling of the public 
debt, and all of these things that bother us day by day in our daily lives. 
But I am going to confine myself this evening to discussion of just four 
or five of these. 

For example, we are concerned about the men in the Kremlin. We are 
concerned about the Atomic Age. We are concerned about the loss of 
our international friends in exposed areas of the world — the loss of them 
to the Communist dictatorship. We are worried about Communist pene- 

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Dwight D. Eisenhower, ig$4 <][ 72 

tration of our own country, and we are worried about the possibility of 
depression, and the loss of jobs among us here at home. 

Now, the greater any of these apprehensions, the greater is the need 
that we look at them clearly, face to face, without fear, like honest, 
straightforward Americans, so we do not develop the jitters or any other 
kind of panic, that we do not fall prey to hysterical thinking. 

Sometimes you feel, almost, that we can be excused for getting a little 
bit hysterical, because these dangers come from so many angles, and they 
are of such different kinds, and no matter what we do they still seem to 
exist. But underlying all of these dangers is one thing: the threat that 
we have from without, the great threat imposed upon us by aggressive 
communism, the atheistic doctrine that believes in statism as against our 
conception of the dignity of man, his equality before the law — that is the 
struggle of the ages. 

Now, the H-bomb — the H-bomb and the Atomic Age. They are not 
in themselves a great threat to us. Of course not. The H-bomb is a 
threat to us only if a potential aggressor, who also has the secrets of the 
H-bomb, determines to use it against us. And against that, then, we 
have to make our provisions, to make certain that sensible men have done 
every possible thing they can to protect ourselves against that threat. 

Communism seeks to divide us, to set class against class, good people 
against good people, when those good people should be standing together 
in defense of liberty and against communism. Because of that, we must 
take counsel among ourselves and stand together and let nothing tear us 
apart. 

So let us first, then, take these purposes one by one, and think of some 
of the counterbalancing factors against the threat itself. By this I mean, 
take the Kremlin. When we say that word, we mean the politburo, and 
we think of what may be its designs against us, what may be the dictator's 
intentions with respect to war or aggression, his plans to enslave the world. 
Of all of these, of course, war poses to us the gravest threat, because of its 
destructive qualities. 

Now let us take the first of what I would call the counteracting or 
counterbalancing factors. The very fact that those men, by their own 
design, are in the Kremlin, means that they love power. They want to be 
there. Whenever they start a war, they are taking the great risk of losing 
that power. They study history pretty well. They remember Musso- 
lini. They remember Hitler. They have even studied Napoleon very 

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<| 72 Public Papers of the Presidents 

seriously. When dictators over-reach themselves and challenge the whole 
world, they are very likely to end up in any place except a dictatorial 
position. And those men in the politburo know that. 

So we have the first of these counteracting or counterbalancing factors, 
against the possibility of their declaring war. There are many risks of 
every kind in war. Among other things, the Russians have a system of 
satellites — captive satellites. Now they know, again, the risks of indulg- 
ing in war when you have captive satellites. 

Napoleon went into Russia in 18 12 with exactly that kind of army. 
The Grand Army of France had been reinforced by Prussians and others 
of the regions that Napoleon had conquered, whose soldiers he had im- 
pressed into his own army. As quickly as he met his first disaster, they 
began to desert. 

The Russians know all that. That very system of satellites could be, 
in a war of exhaustion, a very great source of weakness. They have, as 
compared to us, economic weaknesses, and after all a strong economy is 
necessary, if you are going to push through to victory in a modern war. 

The Russians produced last year something less, probably, than half 
a billion barrels of oil. We produced two and a quarter by ourselves. 
We produced something over twice as much steel as they produced. 
Now these are strong elements in our economy, when you are going to 
use so much of your production to wage a war, particularly a war of 
exhaustion. 

Now all of these things are deterrents upon the men in the Kremlin. 
They are factors that make war, let us say, less likely. As long as they 
know that we are in position to act strongly and to retaliate, war is not 
a decision to be taken lightly. Yet I admit — and we must all admit — 
that it remains a possibility they might do this, in a fit of madness, or 
through miscalculation. 

Of course, as I mentioned before, the H-bomb is dangerous because 
those people have its secrets, possess and have exploded, as they did some 
months back, such a bomb. But we know, with respect to that bomb, 
we are not going to start a war. It is not going to be used by our 
initiative. And I have just talked about this sobering effect of the risks 
of war upon the men in the Kremlin. Of all those sobering effects, 
none is greater than the retaliation that will certainly be visited upon 
them if they would attack any of our nations, or any part of our vital 
interests, aggressively and in order to conquer us. 

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Dwight D. Eisenhower, ig$4 <$ 72 

In addition to all this, we devote ourselves to civil and continental 
defense, in order to make certain that we have the best possible chance 
to live through such a catastrophe, as well as to inflict upon the enemy 
such losses that he would quit fighting. But since insanity still exists, 
I again say there is still an element in that threat that we must calculate 
very coldly and very carefully. 

Now the next thing that we fear, or concerning which we are appre- 
hensive, is this idea of Communist infiltration into our own country, 
into our Government, into our schools, into our unions, into any of our 
facilities, any of our industries, wherever they may be, and wherever 
those Communists could damage us. Now, it would be completely false 
to minimize the dangers of this penetration. It does exist. We know 
some of them are here. Yet, let me give you now some of the counter- 
balancing factors. 

First of all, this fear has been greatly exaggerated as to numbers. In 
our country today, there are possibly some 25 thousand doctrinal Com- 
munists. The FBI knows pretty well where they are. But the headlines 
of the newspapers would sometimes have you think that every other 
person you meet is a Communist. Actually, 25 thousand out of 160 
million people means about one out of six thousand. But they are 
dangerous. 

Now our great defense against those people is the FBI. The FBI 
has been doing, for years, in this line of work, a magnificent job. They 
are a great bulwark, and any one of you can notify them today about 
real valid facts which you have, and they will be on the job doing 
something about it. They are that kind. So great is the story that 
they have to tell that I am not going to attempt to tell it tonight. Instead, 
I have asked the Attorney General on next Friday night, to come before 
you and give you a complete account of what the FBI has been doing 
about this. 

Along with this, this fear of Communist penetration, comes another 
fear that is related to it, the fear that we will use intemperate investi- 
gative methods, particularly through congressional committees, to combat 
communistic penetration. 

As I pointed out before, it is minute. The great mass of governmental 
people, Government workers, civilian and in uniform, people in our 
schools, and everywhere else that we can think of, are just as dedicated 
as you and I. They are just as loyal. But this fringe still has to be 

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<J[ J2 Public Papers of the Presidents 

hunted out, and as I say, you will get a full report of what the FBI is 
doing on this. 

Now, the congressional committee. One of its functions — when it 
was set up as the congressional investigative committee it was to be your 
protection against the unwarranted attacks of an overpowering executive. 
It was to look after your civil liberties, to make certain that your liberties 
were not eroded away. 

Now, ladies and gentlemen, I admit that there can be very grave 
offenses committed against an innocent individual, if he is accused, pos- 
sibly, by someone having the immunity of congressional membership. 
He can lose his job. He can have scars that will be lasting. But in the 
long run, you may be certain of this : America believes in, and practices, 
fair play, and decency and justice. In this country, public opinion is 
the most powerful of all forces. And it will straighten this matter out 
wherever and whenever there is real violence done to our great rights. 

And now the next fear I want to touch upon is the fear of losing inter- 
national friends, the fear that comes to us, or the apprehension that comes 
to us, when we consider that exposed areas of the world, not so strong 
as we are, not so strong in materials, or in this world's riches, or mili- 
tarily, may fall prey to the subversion, the deceit, the bribery, and the 
propaganda that is practiced by the Russians. 

Now, some of these areas are very, very important to us, not merely 
because of the necessary materials we get from them — tin, tungsten, 
rubber, manganese, and all the things we need to keep our economy 
going — but because those people, if regimented under the Communist 
dictators in the Kremlin, could make them stronger and stronger as 
against us, as the free world was chipped away. 

Now, let us take, again, some of the counterbalancing values. Did 
you ever stop to think there is no nation in the world that has ever freely 
adopted communism in a vote of the people? On the contrary, every 
time Communists have taken over a country, even Russia, it has been 
done by a very small minority practicing violence. Or through some 
slick method, or political move it has gotten control of the country, 
establishing a gestapo or other method of police control and has ruled 
that country. 

Moreover, there is a growing understanding in the world, of the de- 
cency and justice of the American position in opposing the slavery of 
any nation. We do not believe that any nation, no matter how great, 

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Dwight D. Eisenhower, 1954 <][ 72 

has a right to take another people and subject them to its rule. We 
believe that every nation has a right to live its own life. Every bit of 
aid we give, every cooperative effort we undertake, is all based upon the 
theory that it is cooperation among equals. 

The other night, a newspaper by a curious error, spoke of allies as 
"appliances" instead of alliances. Now the one mistake we must never 
make is to think of our friends in the international world as being tools 
of ours. They are not. They are friends of ours. And as they are 
friends, they are equals to us. 

The United Nations was conceived with one idea: that cooperative 
effort among great and free, peace-loving nations could establish peace 
in this world. That the United Nations authorizes coalitions in different 
areas of the world designed for the same purposes and in the same spirit. 
We believe in these. In every corner of the world, whether it is to protect 
the southwest Pacific, or NATO in Europe, or wherever it is, we believe 
that the interested nations should band together, and in cooperative spirit, 
maintain the freedom of those countries against any kind of communist 
aggression. Still, some of these nations are weak; they are indecisive. 
And we have our disappointments in trying to build them up. So we 
have again that form of apprehension to take into our calculations, pre- 
pare for and prepare against. 

Now I want to take up, just very briefly, the fear of depression and loss 
of jobs. You will hear people talking about the level of 3,700,000 unem- 
ployed. And it is very true. And it is a figure that comes about as a 
result of our efforts to go from a war to a peace economy. That figure 
happily shows every sign now of leveling off. The last report was only a 
few thousand greater than the one just earlier. 

But these people who look on it so gloomily never say to you that there 
are more than 60 million people today gainfully employed in the United 
States, entirely aside from the 3,500,000 that are in the armed services. 
We have a number of peacetime jobs and an employment that is very 
near to an all-time high. We have great insurance plans in this country 
against loss of jobs. We have a farm program to protect the farmer 
against disaster. We have the great savings of our people near an all-time 
high. And then we have the great requirements of the 160 million people 
of good income, and that is the kind of thing that gives employment and 
insures the productivity of our farms and factories. 

But aside from this, my friends, we have also a Government that is 

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<J[ 72 Public Papers of the Presidents 

ready to act whenever necessary. Now one of the important things in 
this kind of problem is the attitude of your Government. I have tried to 
define our Government several times as one that is completely liberal in 
its relationship to people, but earnestly tries to be conservative when it 
deals with your money and your economy. 

Now already there have been many measures taken to ease and to 
accommodate this transition from war to peace economy. We have made 
loans easier and facilitated construction. We have reduced and are reduc- 
ing to some extent the surpluses that overhang our agricultural market. 
We are trying to increase our markets abroad, stimulating production, 
and so on. But there are many, many more plans in reserve, ready to use 
if necessary. Among these, of course, is public construction, further lower- 
ing of taxes, increasing your money to spend in many ways, and that is 
something to be brought out if necessary. But on the other hand, your 
Government does not intend to go into any slambang emergency program 
unless it is necessary. 

Now, my friends, I should say that the one great aspiration of America 
is a free, peaceful, and prosperous world. To have a free, peaceful, and 
prosperous world, we must be ever stronger; we must be ever stronger 
not only in the things I have mentioned but particularly in this spiritual 
sense, in the belief — the faith that we can do certain things. We must 
have the faith that comes from a study of our own history, from the 
inspiration of leaders like Washington and Lincoln, and what our pioneer- 
ing forefathers did. 

But as we look at the whole problem, and we sum up these apprehen- 
sions of which I have just spoken, we find that each of them has a certain 
lingering element of truth in it. And so we have plans, and this admin- 
istration has presented to the Congress a plan — a legislative program. In 
that program there is ample measure for defense, civil, and continental 
defense and for the deterrent effects of our atomic development. We have 
lowered taxes so that six billion dollars or more have been turned back 
to the public so as to stimulate production. We have farm programs — 
taxes — trade — mutual security — housing — social security — health pro- 
grams — all of these things. My friends, if they are done, we will be cer- 
tain of a stronger America that will be capable of bringing closer to us 
this peaceful, prosperous, and secure America. 

But I say, again, that it is the American belief in decency and justice 
and progress, and the value of individual liberty, because of the rights 

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Dwight D. Eisenhower, 1954 ^ 73 

conferred upon each of us by our Creator, that will carry us through, as 
we study and plan these things. There must be something in the heart 
as well as in the head. So as we do this, as you and I approach our 
problems in this way, I assure you we don't have to fear. I don't mean 
to say, and no one can say to you, that there are no dangers. Of course 
there are risks, if we are not vigilant. But we do not have to be hysterical. 
We can be vigilant. We can be Americans. We can stand up and hold 
up our heads and say : America is the greatest force that God has ever 
allowed to exist on His footstool. 

As such it is up to us to lead this world to a peaceful and secure exist- 
ence. And I assure you we can do it. 

Good-night, my friends. 

73 ^ The President's News Conference of 
April j, 1954. 

the president. We will go right to questions this morning, ladies and 
gentlemen. 

Q. Merriman Smith, United Press: Mr. President, concerning the 
hydrogen bomb, are we going to continue to make bigger and bigger 
H-bombs and, as the H-bomb program continues or progresses, are 
we learning anything that is directly applicable to the peacetime uses 
of atomic energy? 

the president. No, we have no intention of going into a program 
of seeing how big these can be made. I don't know whether the 
scientists would place any limit; and, therefore, you hear these remarks 
about "blow-out," which, I think, is even blowing a hole through the 
entire atmosphere. 

Q. (Questioner unidentified) : What was that, sir? 

the president. I say you hear statements, comments like "blow-out" 
and all of that sort of thing. 

We know of no military requirement that could lead us into the 
production of a bigger bomb than has already been produced. 

Now, with respect to the potentiality of this development for peace- 
time use, our people study, I think in almost every aspect of human 
affairs, how this whole atomic science, this nuclear science, can be 
applied to peacetime uses. 

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CJ 73 Public Papers of the Presidents 

It would be rash to say that the hydrogen bomb doesn't add to the 
possibilities; yet, at the moment, I know of no direct connection or 
direct application of the hydrogen bomb principle to peacetime power. 

I asked that very question of the scientists, and they gave an answer 
as nearly as I have just stated it as I can recall. 

Q. Walter Ridder, St. Paul Pioneer Press and Dispatch : Sir, on that 
subject, a certain Senator said last night there had been a delay of 18 
months in the production of the hydrogen bomb, and suggested it was 
due to subversion in Government. Do you know anything about that? 

the president. No, I know nothing about it. I never heard of any 
delay on my part, never heard of it. 

Q. Mrs. May Craig, New England Papers : Mr. President, aren't you 
afraid that Russia will make bigger hydrogen bombs before we do? 

the president. No, I am not afraid of it. I don't know of any 
reason for building a bigger bomb than you find to represent as great an 
efficiency as is needed or desirable, so I don't know what bigger ones 
would do. 

Q. Joseph Harsch, Christian Science Monitor and NBC: Mr. Presi- 
dent, would you care to say anything to us about the loyalty and patriotism 
of Edward R. Murrow? 

the president. I am going to say nothing at all about that. 

First of all, I don't comment about people, I don't comment about 
things of which I know nothing. 

I will say this: I have known this man for many years; he has been 
one of the men I consider my friend among your profession. That is 
what I do know about him. 

So far as indulging in philosophical discussion, I can't remember any 
instance; but I do say that he has been one of those that over the years, 
in the war, when he was working in London, and so on, I always thought 
of him as a friend. 

Q. Robert Richards, Copley Press: Mr. President, would you mind 
commenting on the strategic importance of Indochina to the free world? 
I think there has been, across the country, some lack of understanding 
on just what it means to us. 

the president. You have, of course, both the specific and the general 
when you talk about such things. 

First of all, you have the specific value of a locality in its production 
of materials that the world needs. 

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Dwight D. Eisenhower, ig^4 <| 73 

Then you have the possibility that many human beings pass under 
a dictatorship that is inimical to the free world. 

Finally, you have broader considerations that might follow what you 
would call the "falling domino" principle. You have a row of dominoes 
set up, you knock over the first one, and what will happen to the last 
one is the certainty that it will go over very quickly. So you could have 
a beginning of a disintegration that would have the most profound 
influences. 

Now, with respect to the first one, two of the items from this particular 
area that the world uses are tin and tungsten. They are very important. 
There are others, of course, the rubber plantations and so on. 

Then with respect to more people passing under this domination, Asia, 
after all, has already lost some 450 million of its peoples to the Commu- 
nist dictatorship, and we simply can't afford greater losses. 

But when we come to the possible sequence of events, the loss of Indo- 
china, of Burma, of Thailand, of the Peninsula, and Indonesia following, 
now you begin to talk about areas that not only multiply the disadvan- 
tages that you would suffer through loss of materials, sources of materials, 
but now you are talking really about millions and millions and millions 
of people. 

Finally, the geographical position achieved thereby does many things. 
It turns the so-called island defensive chain of Japan, Formosa, of the 
Philippines and to the southward; it moves in to threaten Australia and 
New Zealand. 

It takes away, in its economic aspects, that region that Japan must 
have as a trading area or Japan, in turn, will have only one place in the 
world to go — that is, toward the Communist areas in order to live. 

So, the possible consequences of the loss are just incalculable to the 
free world. 

Q. Diosdado M. Yap, Manila Chronicle : Mr. President, next Friday 
marks the 12th anniversary of the fall of Bataan. Would you care to 
make any comment on it? 

the president. Well, I have been asked by General Romulo to send 
a message to a meeting, which I have done. If I haven't already signed 
it, I have been working on it, I know that. 

Q. Raymond Brandt, St. Louis Post-Dispatch: Mr. President, what 
response has Secretary Dulles and the administration got to the request 
for united action in Indochina? 

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^ 73 Public Papers of the Presidents 

the president. So far as I know, there are no positive reactions as 
yet, because the time element would almost forbid. 

The suggestions we have, have been communicated; and we will have 
communications on them in due course, I should say. 1 

Q. Robert G. Spivack, New York Post: Mr. President, do you agree 
with Senator Kennedy that independence must be guaranteed the people 
of Indochina in order to justify an all-out effort there? 

the president. Well, I don't know, of course, exactly in what way 
a Senator was talking about this thing. 

I will say this: for many years, in talking to different countries, dif- 
ferent governments, I have tried to insist on this principle: no outside 
country can come in and be really helpful unless it is doing something 
that the local people want. 

Now, let me call your attention to this independence theory. Senator 
Lodge, on my instructions, stood up in the United Nations and offered 
one country independence if they would just simply pass a resolution 
saying they wanted it, or at least said, "I would work for it." They 
didn't accept it. So I can't say that the associated states want inde- 
pendence in the sense that the United States is independent. I do not 
know what they want. 

I do say this: the aspirations of those people must be met, otherwise 
there is in the long run no final answer to the problem. 

Q. Joseph Dear, Capital Times: Do you favor bringing this Indochina 
situation before the United Nations? 

the president. I really can't say. I wouldn't want to comment at 
too great a length at this moment, but I do believe this : this is the kind 
of thing that must not be handled by one nation trying to act alone. We 



1 On April 10, 1954, the White House released a statement by the Secretary of 
State shortly after his talk with the President before leaving for London and Paris. 
Secretary Dulles stated that he would consult with the British and French govern- 
ments about the problems involved in creating "the obviously desirable united front 
to resist communist aggression in Southeast Asia." The Secretary continued: "The 
communist bloc with its vast resources can win success by overwhelming one by one 
little bits of freedom. But it is different if we unite. . . . Our purpose is ... to 
create the unity of free wills needed to assure a peaceful settlement which will in fact 
preserve the vital interests of us all." 

In a statement released by the White House on April 19, following his return to 
Washington, Secretary Dulles noted that he had found in both capitals recognition of 
the need for exploring the possibility of establishing a collective defense. 

The full text of both statements by the Secretary of State are published in the 
Department of State Bulletin (vol. 30, pp. 590, 668). 

384 



Dwight D. Eisenhower, 1954 <J 73 

must have a concert of opinion, and a concert of readiness to react in 
whatever way is necessary. 

Of course, the hope is always that it is peaceful conciliation and accom- 
modation of these problems. 

Q. Charles von Fremd, CBS Television: I would like to go back to 
the A- and H-bomb matter for just a moment, sir. Due to the concern 
and the arguments in the British House of Commons in the past week, do 
you think it possible or wise to have a renewal of the passage of atomic 
energy information or hydrogen information between the two countries? 

the president. Well, exactly how much information you have to 
pass back and forth, I am not sure. 

This whole development has a curious history, and, I believe, the Prime 
Minister tried to trace some of the several steps the other day in the House 
of Commons. 

Originally, I think it was clearly evident that there was supposed to be a 
complete exchange of information. Then there was a new agreement 
made in '48 — intervening was the Atomic Energy Act. And now, the 
Atomic Energy Commission is — I don't know whether it has as yet pre- 
sented the bill, but it has been working on a bill, at least, you might say 
to modernize the law under which we operate. 

The original bill, let me call your attention, was drawn under the theory 
we could keep the secret of the manufacture of the atomic bomb. Well, 
the second that went out and was disproven, then you have a new condi- 
tion, and there should be now some revision of law. 

As to exactly how much information we should exchange, I am not 
certain; but I do know this: when it comes down to the exchanging of 
the information that is necessary in order for allies to work together 
intelligently, both for the prevention of war or in the tragic occurrence of 
war for operating efficiently, that much, of course, we must do now. 

Q. Alice Johnson, Seattle Times : Mr. President, last week the Senate 
passed a measure enabling both Hawaii and Alaska to achieve statehood. 
If the House should pass that measure, would you veto the bill? 

the president. I believe I have made a rule here never to predict 
what I will do. I am sometimes like the man, you know, who in a speech 
was introduced a little bit overgenerously; and he said, "I am even going 
to be interested in what I am going to say, because there certainly have 
been great predictions made about it. 55 [Laughter] 

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<J 73 Public Papers of the Presidents 

Here we have a situation for which I have stood for a long time, 
Hawaiian statehood. 

I thought there were certain considerations of national security, and 
so on, that made the other case a separate one. 

If these bills are put together, I will have to take a look at them at the 
time and study and decide what I believe to be right at that moment. I 
just can't predict. 

Q. Mrs. Johnson: May I ask one more allied question? Governor 
Heintzleman of Alaska recently suggested that statehood should be given 
only to the populated area of Alaska. Would you favor such a move as 
that? 

the president. I don't know whether I would favor it. It certainly 
is a different problem; and I would look at it with an entirely different 
viewpoint than I would if we had all those outer reaches, barren outer 
reaches, that are lying on the Bering Sea and the Arctic Ocean, included. 
It would be a different problem in my mind. 

Q. Ethel Payne, Defender Publications : Mr. President, in your hous- 
ing message to Congress on January 25th you said the administrative 
policies governing the operations of the several housing agencies must 
be, and will be, materially strengthened and augmented in order to assure 
equal opportunity for all of our citizens to acquire, within their means, 
good and well-located homes. Then there was a further reference to the 
misuse of slum clearance laws to dislocate persons. I would like to know 
what administrative regulations have been issued by the housing agencies 
to implement this part of the message. 

the president. You have asked a question that I will have to ask 
Mr. Hagerty to look up for next week. I know this: I know that every 
administrative part of Government knows my policy and is trying to do 
it. Now, they may be slow getting around to it, sometimes. 

Q. Robert Clark, International News Service: Secretary Dulles has 
said that the Chinese Communists are awfully close to open aggression 
in Indochina. Can you tell us what action we are prepared to take if 
their intervention reaches the point of open aggression? 

the president. No, Mr. Clark, I couldn't answer that one for the 
simple reason that we have got this whole troublous question now under 
study by a group of people. 

The only thing I can say is that here is a problem that is of the utmost 
moment to all of us, not only the United States, to the free world. It is 

386 



Dwight D. Eisenhower, ig$4 <f 73 

the kind of thing to which there is more attention given, I guess, at the 
given moment of real acute occurrence than almost any other thing. 

It is getting study day by day, and I can't tell you what would be the 
exact reaction. 

Q. Sarah McClendon, El Paso Times: Sir, I found many Senators 
and House members this week who said that while you were allaying 
their fears, that Secretary Dulles was making them fear more, and I 
wonder if he is going to clear his statements on Indochina with you? 

the president. So far as I know, Secretary Dulles has never made 
an important pronouncement without not only conferring and clearing 
with me, but sitting down and studying practically word by word what 
he is to say. 

Now, I am not aware of any antagonism between the statements he 
has made and I have made. 

I have plead with America to look facts in the face; I have plead with 
them not to minimize what the possibilities of the situation are, but to 
realize that we are 160 million of the most productive and the most 
intelligent people on earth; therefore, why are we going around being 
too scared? 

Now, on the other hand, we would be completely foolish not to see 
what these facts are and what their potentialities are. 

I see those two statements as completely compatible, not as 
incompatible. 

Q. Marvin Arrowsmith, Associated Press: Mr. President, you have 
touched on this, but I wonder if you could tell us whether there is any 
truth to these reports in the last couple of days that the United States is 
asking some of the other free nations to join in a joint declaration warn- 
ing Communist China against any aggression in Southeast Asia? 

the president. No; in approach, Mr. Arrowsmith, you call atten- 
tion to the problem and say that this looks like a place where the interests 
of all of us are involved, and now let us talk this over. You don't pro- 
pose the answer before you study it, put it that way. 

Q. Kenneth Scheibel, Gannett Newspapers: Sir, could you tell us 
how soon you expect to name a successor to Mr. Warren, the Comptroller 
General? 

the president. No, I can't tell you. 

Q. Henri Pierre, Le Monde (Paris) : Mr. President, would you say 
that the last statement of the Secretary of State of last week about 

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<][ 73 Public Papers of the Presidents 

Indochina has improved the chance of reaching a negotiated solution at 
Geneva of the Indochinese controversy? 

the president. Your question is really, do I think there is a good 
chance of reaching a negotiated solution? 

Q. Mr. Pierre : That is right. 

the president. Well, I wouldn't class the chances as good, no, not 
one that the free world would consider adequate to the situation. 

I must say, let me make clear again, I am certain the United States, 
as a whole, its Congress and the executive portions of its Government, 
are ready to move just as far as prudence will allow in seeking any kind 
of conciliation or negotiated agreement that will ease any of the problems 
of this troubled world. But one thing: we are not going to overstep the 
line of prudence in keeping ourselves secure, knowing that the agree- 
ments we made have some means of being enforced. We are not 
simply going to take words. There must be some way of making these 
things fact and deed. 

Q. Robert Riggs, Louisville Courier- Journal : Does the executive 
branch want any action by Congress now about Indochina? 

the president. Not at this moment. I should point out, with all 
the sincerity I have, there is nothing partisan about this problem. There 
is nothing, so far as I know, in which the executive branch and the 
Congress are apart. We not only must confer upon the broadest scale 
with the leaders of Congress as we proceed toward a decision, we go 
just as far as they would think it would be necessary in such a conference. 
If some specific authority or anything else were necessary, it would be 
asked for after the leaders had already agreed on a bipartisan basis this 
is what we should do. 

I know of nobody that is trying to escape his responsibility in this 
whole business, because we realize that it is America and the free world 
we are talking about, and nothing else. 

Q. Martin Agronsky, American Broadcasting Company: Mr. Presi- 
dent, in response to the question about whether you knew anything of 
Senator McCarthy's charge that the building of the H-bomb had been 
delayed for 18 months as a result of Communist influence in our Gov- 
ernment, you replied you didn't know anything about that. That 
might leave the implication, sir, that there is some possibility of truth 
in that charge. It is a very serious charge, of actually high treason in 
Government. 

388 



Dwight D. Eisenhower^ ig54 ^ 73 

the president. I don't know. As a matter of fact, I don't know of 
any speech, first of all; I get from here the first knowledge that there 
was a speech. But, secondly, I have been very close to the Chairman 
of the Atomic Energy Commission. He tries to keep me informed not 
only of present developments but of history. He has never mentioned 
such a thing as you speak of, and I gave a perfectly honest answer: 
I never heard of it. 

Q. James Patterson, New York News: Mr. President, as the last resort 
in Indochina, are we prepared to go it alone? 

the president. Again you are bringing up questions that I have 
explained in a very definite sense several times this morning. 

I am not saying what we are prepared to do because there is a Con- 
gress, and there are a number of our friends all over this world that are 
vitally engaged. 

I know what my own convictions on this matter are; but until the 
thing has been settled and properly worked out with the people who also 
bear responsibilities, I cannot afford to be airing them everywhere, 
because it sort of stultifies negotiation which is often necessary. 

Q. John W. Vandercook, American Broadcasting Company: Going 
to a change of subject, sir, the most recent figures of the Bureau of Census 
have indicated that possibly unemployment is leveling out; that state- 
ment has been made. Would you care to say, sir, whether you have 
reckoned a specific figure or proportion of unemployment which might 
be regarded as acceptable or permissible as an average in the American 
life? 

the president. Well, in the economic conferences, we talk about 
that possibility a very great deal. But let us remember, the economy of 
America is not a static thing; you cannot say 6 percent equals so-and-so, 
and that is disaster, and something else is prosperity. It is a fluid thing, 
and you must keep touch with it. 

Now, the last figures I saw, apparently the total of employment rose 
about 50,000 in March and apparently unemployment rose about 50,000, 
sort of canceling each other out, but showing a very definite flattening 
out of the curve of the rise of unemployment. 

There are other rather encouraging signs in the economy. The thing 
is now, I think, to keep in touch with it day by day to be ready to move 
with everything you have, to give it a boost in the right direction. But 

389 



(][ 73 Public Papers of the Presidents 

again, as in all other things, let's don't be panicky about it, let's be 
straightforward. This is one field where I have no intention of trying 
to conceal anything from the American public that we find out. It is 
just what do we do at any given moment, and it is not always easy, but 
we are doing our best. 

Q. Mr. Vandercook : May I ask a related question, sir? 

THE PRESIDENT. YeS. 

Q. Mr. Vandercook: Do you have in mind so far any intention of 
proposing legislation to assist the States to continue unemployment bene- 
fits beyond the 6 months' period, as that 6 months, in many instances, 
is running out? 

the president. I have forgotten for sure whether that was in the 
bill that went to the Congress or not. I remember the subject was dis- 
cussed by Mrs. Hobby in front of me, and I would have to ask Mr. 
Hagerty to give you the exact thing as to whether it was actually in 
the bill. 

Merriman Smith, United Press : Thank you, Mr. President. 

note: President Eisenhower's thirty- 10:57 o'clock on Wednesday morning, 
fourth news conference was held in the April J, 1954. In attendance: 197. 
Executive Office Building from 10:32 to 

74 ^ Statement by the President on the 
Approval by the Luxembourg Parliament of the 
European Defense Community Treaty. 
April J, 1954 

I HAVE JUST learned of the vote of the Luxembourg Parliament, 
approving ratification of the treaty establishing the European Defense 
Community. Luxembourg has thus become the fourth of the six Euro- 
pean Defense Community nations whose Parliament has taken favorable 
action. 

This represents further significant progress in the establishment of 
this Community. The integration of the defense forces of France, Ger- 
many, the Benelux nations and Italy will do much to assure conditions 
in Europe which will contribute to the peace and security of that area. 



390 



Dwight D. Eisenhower, ig54 <][ 76 

75 <I Statement by the President Upon 
Approving the Joint Resolution Providing for the 
Observance of Bataan Day. April 8, 1 954 

I HAVE TODAY approved Senate Joint Resolution 143 providing for 
the observance of April 9, the twelfth anniversary of the fall of Bataan, 
as Bataan Day. 

The intervening years since Bataan have little dimmed the bitterness 
of defeat, the sorrow at the terrible human loss. Nevertheless, that day 
was a day of glory. Philippine and American soldiers wrote a heroic 
chapter in military history. As comrades in arms they proved in defeat 
that men of righteous purpose and firm resolve can endure suffering and 
death and fight with courage and tenacity. 

Bataan Day reminds us of the close ties which bound our two coun- 
tries in adversity and by which we are still joined in happier circum- 
stances. We are bound no longer in a relationship of dependence, nor 
by common peril, but in a far richer bond — that of free and sovereign 
nations with like aims and aspirations. 

On this twelfth anniversary of the fall of Bataan, let us remember with 
a full measure of gratitude those brave and gallant men of our two 
countries who stood and fell together in the cause of freedom. 

note: As enacted, Senate Joint Resolution 143 is Public Law 328, 83d Congress (68 
Stat. 51). V 

76 ^ Remarks at Ceremony Marking the 
Issuance of the First Stamp Bearing the Motto 
"In God We Trust." April 8,1954 

General Summer field and distinguished guests: 

The size and greatness, the influence of America have come to be an 
accepted fact in the modern world. 

In trying to describe these characteristics and qualities of our country, 
we are often tempted to do it in terms of the height of our buildings, the 
extent of our roadways, the speed of our automobiles, the wonderful 
gadgets that we use in our houses. 

39i 



<J[ 76 Public Papers of the Presidents 

But America was great, America was a symbol of hope to many 
millions of people long before these modern appliances were even 
discovered by the genius of man. 

Throughout its history, America's greatness has been based upon a 
spiritual quality, which seems to me is best symbolized by the stamp 
that will be issued today, and in honor of which issuance we are here 
gathered. 

The Flame of Liberty symbolizes the determination of America always 
to remain free, to remain a haven of the oppressed and a ready acknowl- 
edgement that all men in the attainment of human aspirations and 
worthy aspirations are dependent upon an Almighty. 

It seems to me in these two concepts we have a true description of 
the greatness of America. 

The reason that I was particularly honored to come here today, aside 
from the opportunity of meeting with friends, was to be a part of the 
ceremony which now gives to every single citizen of the United States, 
as I see it, the chance to send a message to another. Regardless of any 
eloquence of the words that may be inside the letter, on the outside he 
places a message: "Here is the land of liberty and the land that lives 
in respect for the Almighty's mercy to us." And to him that receives 
that message, the sender can feel that he has done something definite 
and constructive for that individual. 

I think that each of us, hereafter, fastening such a stamp on a letter, 
cannot fail to feel something of the inspiration that we do whenever we 
look at the Statue of Liberty, or read "In God We Trust." 

note: The ceremony was held in the Summerfield. The stamp was an 8-cent 
office of Postmaster General Arthur E. issue. See also Item 77 below. 

77 *I Remarks at Luncheon Meeting of the 
National Conference of Republican Women. 
AprilS, 1954 

Madam Chairman, and ladies: 

To illustrate the state of confusion in which I sort of find myself at 
this moment, I think I should tell you a story about three cross-eyed 
men who were called before a cross-eyed judge. And in starting the 

392 



Dwight D. Eisenhower, IQ54 <J[ 77 

examination, he said to the first, "What's your name?" And the second 
one said, "John Smith." The Judge said, "I didn't speak to you," and 
the third one said, "I know it." 

For some reason or other, I thought I was to come to a business meet- 
ing of this organization and that I was to step in and more or less wave 
a hand and be on my way. I found that, as you can see, that I was a 
little wrong. 

I have just come from assisting in the dedication of a new stamp. 
Sounds like a very commonplace and ordinary sort of thing to do. It was 
thrilling — and I will tell you why it was to me. Not only because of the 
company there gathered — representatives of all the great religious groups 
of the United States, and of our Government, and of others. The stamp 
has on it a picture of the Statue of Liberty, and on it also is stated "In 
God We Trust." 

By putting on the Flame of Liberty, it seems to me it places America 
before the world, not as the greatest nation because of its tall buildings 
and its automobiles, but because it represents a concept of human dignity, 
that here all the world can enjoy this liberty, all of those who come to 
her shores; and also a Nation whose greatness is based on a firm unshake- 
able belief that all of us mere mortals are dependent upon the mercy of a 
Superior Being. 

Now the reason this seems so thrilling is not just those thoughts, but 
the opportunity it gives to every single individual who buys the stamp to 
send a message — regardless of the content of a letter. You may, by plac- 
ing that stamp on a letter, send a message of hope to those who are 
oppressed, or let us say, of inspiration and reawakening to our own 
friends and those among us who will be reminded thereby that this is the 
land of the free and in God we trust. So each of those stamps, I think, 
is a worthy messenger of the American system. And as I can see this, 
every proper, every dedicated political worker is exactly the same. 

The Republican Party is by no means a conspiracy among people who 
simply thirst for power. The Republican Party is an agency of America, 
which means an agency for spreading further in the world this concept of 
the dignity of the human, our dependence upon a Superior Being. 

And in those two concepts we find vast room to develop every single 
good thought, idea, program, for the benefit of our own citizens, and to 
serve as worthy leaders in the same way for the entire world. 

Ladies and gentlemen — are there any gentlemen here? — I cannot tell 

393 



f$ 77 Public Papers of the Presidents 

you how great I believe to be the opportunity that now lies before 
America, and before the Republican Party of that country. 

Now, I understand — I have been told — that 52 percent of the votes 
cast for the Republicans in the last national election were by women. 
Consequently, I must say that it would appear the majority of my grati- 
tude to the people for the work they did in advancing the kind of theory 
of which I have been trying so haltingly to speak, belongs to the women. 

I want to tell you now two tiny stories, one occurring this morning in 
my office. There is a man visiting us from Australia. He is head of the 
steel union — the iron and steel union of Australia. His name is Short. 
He is a very thoughtful, very earnest, and very sincere man. And he 
was talking about defeating communism. He fought for 15 years within 
his union to defeat communism, and finally did it, and is now chairman 
of that union, the greatest in Australia. He has, therefore, acquired a 
very great deal of experience, a lot of which we could possibly use. He 
does not believe that the defeat of communism lies merely in economic 
measures, in trying to raise the standard of living. He believes it is in 
work — work and organization. And he made the report that women are 
great workers, and if they believe something, if they are dedicated to it, 
their energy is tireless, their determination unbounded. 

Not long ago I had the great pleasure of playing a round of golf — at 
least I went along — with Ben Hogan. Ben Hogan is, of course, the great 
golfer of our time — of these modern days. I said to him, "Do you think 
that such and such a young man will be a champion who can take your 
place?" And he said, "It depends entirely on how seriously he takes his 
job and how hard he will work." He said, "He has got everything; 
that's all he needs to do." 

I think that the tribute that I should like to bring to Republican 
women this morning is this : whenever they have come to my office, and 
their representatives, they have sought opportunities to work, oppor- 
tunities better to organize, missions to carry out — something to do. I 
have yet to have a delegation of women come to my office and insist 
that so and so be appointed to this or to that, or that we lower taxes 
even on handbags. They have come as dedicated people, ready to work, 
appreciating the seriousness of their job. 

I could wish that that kind of attitude and that kind of spirit was 
shared by every single American, no matter what their political faith, 

394 



Dwight D. Eisenhower, IQ54 <JH 78 

no matter what their political convictions. Because in the long run, it 
is only as America expresses with all its might what it believes, in its heart 
and its mind, are we going to be safe and secure in a free and prosperous 
world. If we do that we cannot fail. We must have that kind of dedi- 
cation to win. 

I am very grateful to you for asking me over in front of this distin- 
guished body. I hope you have had a fine time here. I hear that you 
have been briefed by most of my Cabinet officers. And I get that every 
week, so I know you are very well informed about everything that is 
going on. 

Thank you. 

note: The President's opening words the President referred to Laurence E. 

"Madam Chairman" referred to Bertha Short, National Secretary of the Fed- 

Adkins, Assistant to the Chairman of the erated Iron Workers Association of 

Republican National Committee. Later Australia. 

78 <I Remarks at the "Help Korea" Trains 
Ceremony. April g, 1954 

FIRST OF ALL, I think I may speak for the people of the United 
States in thanking you three gentlemen — and you, Mrs. Willkie — for 
your part in mobilizing the gifts of America to go to a country where 
they are so badly needed. 

I think I can speak, also, for the nation, in thanking the railroads for 
being so helpful and cooperative in showing such a sympathetic attitude 
toward this great need. 

I want to speak for just a moment about my pride in what the Army 
has done. The Army had a long and grueling experience out in that 
country, as did, of course, all our fighting forces. Yet so impressed were 
our soldiers by the great need out there, and by the gallantry of their 
ally, that they themselves contributed more than 25 million dollars. This 
was completely aside from all of the work they did in providing the 
know-how for reconstruction of schools, hospitals, roads, bridges — all the 
things that were destroyed in the war. 

So as they excite my pride, you people excite my thanks. I am certain 
that all of us are going to have our sentiments stirred very deeply in this 
country by your efforts. I am sure the response will be everything that 
you expect. 

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<J 78 Public Papers of the Presidents 

Now to each of you — good luck. 

note: The President spoke in the Rose Trains campaign, Philip A. Hollar, Vice 

Garden at 2:30 p.m. In the opening President of the Association of American 

paragraph he referred to Dr. Howard A. Railroads, and Mrs. Wendell L. Willkie, 

Rusk, President of the American Korean National Chairman of the Women's Divi- 

Foundation, Henry C. Alexander, Na- sion of the American Korean Foundation, 
tional Chairman of the Help Korea 

79 ^ Citation Accompanying Medal of Honor 
Presented to Benjamin F.Wilson. April 10, 1954 

THE PRESIDENT of the United States of America, authorized by Act 
of Congress March 3, 1863 has awarded in the name of The Congress 
the Medal of Honor to 

FIRST LIEUTENANT (THEN MASTER SERGEANT) 
BENJAMIN F. WILSON, UNITED STATES ARMY 

for conspicuous gallantry and interpidity at the risk of his life above and 
beyond the call of duty in action with the enemy : 

Lieutenant Wilson, Infantry, United States Army, a member of Com- 
pany I, 31st Infantry Regiment, 7th Infantry Division, distinguished 
himself by conspicuous gallantry and indomitable courage above and 
beyond the call of duty in action against the enemy near Hwach'on- 
Myon, Korea, on 5 June 1951. Company I was committed to attack 
and secure commanding terrain stubbornly defended by a numerically 
superior hostile force emplaced in well-fortified positions. When the 
spearheading element was pinned down by withering hostile fire, he 
dashed forward and, firing his rifle and throwing grenades, neutralized 
the position denying the advance and killed four enemy soldiers manning 
submachine guns. After the assault platoon moved up, occupied the 
position and a base of fire was established, he led a bayonet attack which 
reduced the objective and killed approximately twenty-seven hostile 
soldiers. While friendly forces were consolidating the newly-won gain, 
the enemy launched a counterattack and Lieutenant Wilson, realizing 
the imminent threat of being overrun, made a determined lone-man 
charge, killing seven and wounding two of the enemy, and routing the 
remainder in disorder. After the position was organized, he led an 

396 



Dwight D. Eisenhower, ig^4 <][ 80 

assault carrying to approximately fifteen* yards of the final objective, 
when enemy fire halted the advance. He ordered the platoon to with- 
draw and, although painfully wounded in this action, remained to pro- 
vide covering fire. During an ensuing counterattack, the commanding 
officer and first platoon leader became casualties. Unhesitatingly, Lieu- 
tenant Wilson charged the enemy ranks and fought valiantly, killing 
three enemy soldiers with his rifle before it was wrested from his hands, 
and annihilating four others with his entrenching tool. His courageous 
delaying action enabled his comrades to reorganize and effect an orderly 
withdrawal. While directing evacuation of the wounded, he suffered a 
second wound, but elected to remain on the position until assured that 
all of the men had reached safety. Lieutenant Wilson's sustained valor 
and intrepid actions reflect utmost credit upon himself and uphold the 
honored traditions of the military service. 

Dwight D. Eisenhower 

note: The President presented the medal Base at 1 1 :$o a.m. on September 7, 1954, 
to Lieutenant Wilson at Lowry Air Force in the presence of relatives and friends. 

80 ^ Statement by the President on the Death 
of Senator Griswold of Nebraska. April 12, 1954 

I WAS SHOCKED to hear the news of the sudden and tragic passing 
of Dwight P. Griswold. As Governor of Nebraska, Chief of the Ameri- 
can Mission for Aid to Greece, and as a member of the United States 
Senate, Senator Griswold was a devoted public servant and a distin- 
guished legislator. Although he had served in the Senate less than two 
years, his long experience in government made him a valuable member 
of the Upper House; one whose advice and counsel were widely sought. 
The nation can ill afford to lose the services of such a fine American as 
Dwight P. Griswold. 



397 



^ 8 1 Public Papers of the Presidents 

8 1 ^ Memorandum to the Administrator, 
Housing and Home Finance Agency, Directing 
Him To Take Custody of the Records of the 
Federal Housing Administration. April 1 2, 1 954 

Memorandum for: 

The Administrator 

Housing and Home Finance Administrator 

In order to facilitate the investigations which are being conducted by 
the Executive Branch of the Government and any other actions neces- 
sary or proper to insure the fidelity of operations under the National 
Housing Act, you are hereby authorized and directed to take custody 
forthwith of all files and records of the Federal Housing Administration, 
both in Washington and the field, pertaining to Title I and Section 608 
of the National Housing Act, and such other files and records as you find 
proper for such purposes. 

Dwight D. Eisenhower 

note: On April 16 a White House re- the President had similarly directed all 

lease stated that the President had di- agencies to assist in any investigations by 

rected all appropriate agencies to coop- committees of the Congress into FHA 

erate fully in the investigation of the activities in the field of small property 

Federal Housing Administration being improvement insurance and the financ- 

conducted by Albert M. Cole, Adminis- ing of privately-owned rental housing 

trator of the Housing and Home Finance projects. 
Agency. The release further stated that 

82 ^f Message to the King of Laos on the 50th 
Anniversary of His Accession to the Throne. 
April 15,1954 

[ Released April 15, 1954. Dated April 14, 1954 ] 

His Majesty Sisavang Vong 

King of Laos 

Luang Prabang, Laos 

It is an honor to send personal greetings to Your Majesty on the fiftieth 
anniversary of your accession to the throne. I wish at the same time to 

398 



Dwight D. Eisenhower, 1954 ^ 83 

express my hope that the people of Laos will continue for many years to 
benefit from your wise and courageous leadership which has been so vital 
a factor in the inspiring defense of your Kingdom against foreign 
aggression. 

Dwight D. Eisenhower 

note : This message was released at Augusta, Ga. 

83 <I Exchange of Messages Between the 
President and the President of France and the Chief 
of State of Viet-Nam Concerning the Defenders of 
Dien Bien Phu. April 1 6, 1 954 

IN COMMON with millions of my countrymen, I salute the gallantry 
and stamina of the Commander and soldiers who are defending Dien 
Bien Phu. We have the most profound admiration for the brave and 
resourceful fight being waged there by troops from France, Vietnam, and 
other parts of the French Union. Those soldiers, true to their own great 
traditions, are defending the cause of human freedom and are demon- 
strating in the truest fashion qualities on which the survival of the free 
world depends. I would be grateful if you would convey to the Com- 
mander of the gallant garrison of Dien Bien Phu this expression of my 
admiration and best wishes. 

Dwight D. Eisenhower 

note: Identical messages were sent to well. Our soldiers will proudly welcome 

President Goty of France and to the Chief this testimony by the former Commander- 

of State of Viet-Nam, Bao Dai. in-Chief, who led the allied troops to vic- 

President's Coty's reply follows: tory in the fight against oppression. 

I have transmitted without delay, to Rene Coty 

the fighting men of Dien Bien Phu and The reply from the Chief of State of 

to their chiefs the message you sent to Viet-Nam follows: 

me. The Expeditionary Corps and the At moment when all who here partici- 

National Armies of the Associated States pate in battle for dignity of man are 

are fighting in Indo China not only for bound by anxiety and animated by hope 

the safeguard and the independence of your message is a precious comfort, 

the Associated States but also for the The moving battle of Dien Bien Phu 

common ideal adopted by the whole free symbolizes the determination of commu- 

world, as our American friends know so nism to impose its rule without regard for 



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CJ 83 Public Papers of the Presidents 

the suffering of the people. Also opens given them by the great American nation 

all eyes to reality of force and wills which address to it the expression of their grati- 

refuse to bow before the Red despotism. tude and friendship. 

Before this dramatic circumstance, the Bao Dai 

Vietnamese people unite in determination The messages were released at Augusta, 

and recognizing the disinterested aid Ga. 

84 ^ Statement by the President Regarding 
Relationships With the Proposed European 
Defense Community. April 16, 1954 

AS THE TIME APPROACHES for historic decision on the remaining 
measures required to put into effect the European Defense Community 
Treaty, it is appropriate for me to state clearly the United States position 
on the relation between the European Army and the European Com- 
munity on the one hand, and the North Atlantic Treaty Organization 
and the broader Atlantic Community on the other hand. The essential 
elements of this position, which have been discussed with leaders of both 
political parties in the Congress, may be simply stated. 

The United States is firmly committed to the North Atlantic Treaty. 
This Treaty is in accordance with the basic security interests of the 
United States and will steadfastly serve these interests regardless of the 
fluctuations in the international situation or our relations with any 
country. The obligations which the United States has assumed under 
the Treaty will be honored. 

The North Atlantic Treaty has a significance which transcends the 
mutual obligations assumed. It has engendered an active practical 
working relationship among the Atlantic nations. Through the North 
Atlantic Treaty Organization, the United States and its allies are working 
to build the concrete strength needed to deter aggression and, if aggres- 
sion occurs, to halt it without the devastation or occupation of any NATO 
country. These nations are also seeking to make the Atlantic Alliance 
an enduring association of free peoples, within which all members can 
concert their efforts toward peace, prosperity, and freedom. 

The European Defense Community will form an integral part of the 
Atlantic Community and, within this framework, will ensure intimate 
and durable cooperation between the United States forces and the forces 
of the European Defense Community on the continent of Europe. I am 

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Dwight D. Eisenhower, 1954 ^ 84 

convinced that the coming into force of the European Defense Com- 
munity Treaty will provide a realistic basis for consolidating Western 
defense and will lead to an ever-developing community of nations in 
Europe. 

The United States is confident that, with these principles in mind, 
the Western European nations concerned will proceed promptly further 
to develop the European Community through ratification of the Euro- 
pean Defense Community Treaty. When that Treaty comes into force 
the United States, acting in accordance with its rights and obligations 
under the North Atlantic Treaty, will conform its actions to the following 
policies and undertakings : 

( 1 ) The United States will continue to maintain in Europe, including 
Germany, such units of its Armed Forces as may be necessary and appro- 
priate to contribute its fair share of the forces needed for the joint defense 
of the North Atlantic area while a threat to that area exists, and will 
continue to deploy such forces in accordance with agreed North Atlantic 
strategy for the defense of this area. 

(2) The United States will consult with its fellow signatories to the 
North Atlantic Treaty and with the European Defense Community, on 
questions of mutual concern, including the levels of the respective Armed 
Forces of the European Defense Community, the United States and other 
North Atlantic Treaty countries to be placed at the disposal of the 
Supreme Commander in Europe. 

(3) The United States will encourage the closest possible integration 
between the European Defense Community forces on the one hand, and 
United States and other North Atlantic Treaty forces on the other, in 
accordance with approved plans with respect to their command, training, 
tactical support, and logistical organization developed by the military 
agencies and the Supreme Commanders of the North Atlantic Treaty 
Organization. 

(4) The United States will continue, in conformity with my recom- 
mendations to the Congress, to seek means of extending to the Atlantic 
Community increased security by sharing in greater measure information 
with respect to the military utilization of new weapons and techniques 
for the improvement of the collective defense. 

(5) In consonance with its policy of full and continuing support for 
the maintenance of the integrity and unity of the European Defense 
Community, the United States will regard any action from whatever 

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1$ 84 Public Papers of the Presidents 

quarter which threatens that integrity or unity as a threat to the security 
of the United States. In such event, the United States will consult in 
accordance with the provisions of Article 4 of the North Atlantic Treaty. 
(6) In accordance with the basic interest of the United States in the 
North Atlantic Treaty, as expressed at the time of ratification, the Treaty 
was regarded as of indefinite duration rather than for any definite number 
of years. The United States calls attention to the fact that for it to cease 
to be a party to the North Atlantic Treaty would appear quite contrary 
to our security interests when there is established on the continent of 
Europe the solid core of unity which the European Defense Community 
will provide. 

note : The President's statement was France, Germany, Italy, Luxembourg, and 
transmitted through the Department of the Netherlands. 
State to the Prime Ministers of Belgium, 

85 ^ Telegram Inviting the Governors of States 
Afflicted by Dust Storms To Attend Conference 
at the White House. April 1 6, 1 954 

[ Released April i6, 1954. Dated April 15, 1954] 

I AM DEEPLY CONCERNED about the consequences of the dust 
storms which have afflicted your State and others in the southwestern 
part of the United States, coming as they have upon the heels of serious 
and extended drought. This concern extends not only to measures to 
alleviate suffering and protect property, but to measures which will meet 
the problem on a longer run basis. This involves all levels of govern- 
ment in working out a cooperative program for improved land utilization 
and soil conservation. You are invited, along with Governors of other 
seriously affected states, to attend in the Cabinet Room of the White 
House a conference to discuss this problem at 2:30 p.m. April 26, 1954. 
I am hopeful that you will find it possible to be present. 

Dwight D. Eisenhower 

note: This telegram was sent to the fol- F. Arn of Kansas, Edward L. Mechem of 
lowing Governors : Allan Shivers of Texas, New Mexico, and Dan Thornton of 
Johnston Murray of Oklahoma, Edward Colorado. 



402 



Dwight D. Eisenhower, IQ54 <J 86 

86 ^ Remarks to the 63d Continental Congress 
of the National Society of the Daughters of the 
American Revolution. April 22,1954 

Madam President, and members and friends of this great typically 
American Society: 

It is a tremendous honor that you accord me by inviting me to appear 
before you, even though very informally and briefly. My first message 
is from Mrs. Eisenhower who, for once in a long lifetime, bowed to my 
wishes and remained at her little place of rest down in Georgia while I 
came to bring you greetings from the family. 

I want to talk to you for a few moments from the standpoint of the 
application of the great principles for which this Society stands, which 
this Society supports, the application of those principles to today's life. 

I think we would not have to go to any great length to describe what 
we mean by those basic principles. Our Founding Fathers in writing 
the Declaration of Independence put it in a nutshell when they said, 
"We hold that all men are endowed by their Creator with certain rights." 

In that one phrase was created a political system which demands and 
requires that all men have equality of right before the law, that they are 
not treated differently merely because of social distinction, of money, of 
economic standing, indeed of intelligence of intellectual capacity, or any- 
thing else. 

It acknowledges that man has a soul, and for that reason is equal to 
every other man, and that is the system, that is the principle — that is the 
cornerstone of what we call the American system. 

There are, of course, dozens of auxiliary principles that go along with 
this one, but rip out this one and you have destroyed America, while many 
others could be at least revised, studied, and considered without neces- 
sarily damaging our whole governmental and political structure. 

Now, how do we apply such a system in a world where there is present 
one great power complex that stands for the exact opposite? Remember, 
in the phrase I quoted to you, "Men are endowed by their Creator." Our 
system demands the Supreme Being. There is no question about the 
American system being the translation into the political world of a deeply 
felt religious faith. 

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<J[ 86 Public Papers of the Presidents 

The system that challenges us today is the atheistic. It is self-admitted 
as an atheistic document. They believe in a materialistic dialectic. In 
other words, there are no values except material values. It challenges us 
today in every corner of the globe. 

Now, how do we approach Indochina, or debt management, or taxes, 
or France, or any other problem that looms up as important to us, in a 
world where no nation may live alone? How do we oppose the idea of the 
equality of men, which means group action by cooperation among men, 
as against this dictatorial, atheistic policy that treats men merely as an 
agent, as a pawn, as an atom, to be used according to the dictates of the 
ruler? That is the problem of today. 

It would be interesting if we could have the counsel of Washington, of 
Madison, or of Jefferson, or of Franklin today, after all this span of almost 
two centuries, if they could sit with us and counsel with us on these 
problems. They cannot do it. We find, like all other generations, we 
have our problems. I hold they are not insoluble. America can do it. 

But remember, among equals, group action is done to the greatest 
extent possible by cooperation. You are a free individual. The general 
limits of your freedom are merely these: that you do not trespass upon, 
the equal rights of others. 

In the same way, in a free society of nations, we don't dictate to one 
of our friends what they must do. And we certainly won't tolerate any 
attempt of theirs to dictate to us what to do. 

We are a society of equals, both nationally and internationally. And 
that is the problem. How do we marshal the great intellectual, scientific, 
economic, financial, spiritual resources of such a great aggregation of 
equals against a single dictatorial, ruthless enemy that threatens, through 
every possible type of aggression, the peace of the world? 

Now, those are the problems. And I want to say several things. 
First — I think possibly I am talking about the reasons that I venerate 
and admire the Daughters of the American Revolution, because the very 
fact that you preserve this Society means that you do venerate the system 
that was established by our forefathers. Your lives, or at least this part 
of your lives, your public service, is dedicated to the preservation of those 
principles. If we are then united in spirit, we develop a power that is 
unknown to regimentation. 

Woodrow Wilson said, in far better words than could I, something 



404 



Dwight D. Eisenhower, IQ54 ^f 86 

of what I am trying to get at. He said, "The highest form of efficiency 
is the spontaneous cooperation of a free people." 

What I am trying to talk about is the great power, the great force, 
that is developed by people who believe in certain causes, or a certain 
principle, with their whole heart and soul. 

You know, there was an old feeling among people that you could not 
have great elan, great esprit, in a service and at the same time an iron 
discipline. People that believe that ought to read the story of Cromwell's 
Ironsides. They had not only stern discipline but a great elan, because 
they believed in something. They went into battle singing hymns. 

I sometimes wish that as we approach a concentration, a mobilization 
of ourselves, of the powers of which we are capable, that we would meet 
in the idea of singing, whether it's America the Beautiful, or something 
else, but coming together in the idea that here is a spirit, a belief, a 
determination that can't be whipped by anything in the world. And 
that's all we need. 

If any of you would follow your imagination to travel around the 
world, you would find that still in the control of that part of the world 
we call independent, outside the Iron Curtain, there is a great pre- 
ponderance of the world's material resources, a great preponderance of 
human beings, a great intellectual capacity, particularly in certain centers, 
a great culture, great scientific advancement; in the aggregate resources 
so overwhelming as compared to the Iron Curtain countries that you 
sometimes wonder why we grow tense, we grow fearful. 

And that brings me back again to my one single theme. It is because 
we instinctively fear a power that is in the hands of a single dictatorial 
group or person. How do we combat that power? Again I say, by a 
spiritual unity among ourselves that is indestructible, among ourselves 
as individuals, among the nations that we are proud to call friends. 

Now, that is a rough chart, as I see it, of the way we will win the 
cold war, and prevent a hot war, because we will bring to bear in this 
search and quest for peace all the great spiritual, intellectual, and material 
values which the free world can concentrate to this one purpose. 

Underneath it all must lie this common understanding, th